Free account: track your progress — Sign up free

WAEC Accounting 2021 Objective — Question 47

Question 47 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

Advertisement

The balance of rent in the balance sheet would be

  • A. current asset of GH¢84,000
  • B. current asset of GH¢12,000Correct
  • C. current liability of GH¢12,000
  • D. current liability of GH¢48,000

Explanation

Since GH¢48,000 was paid but only GH¢36,000 relates to the year's expense, there is a prepaid rent of GH¢12,000, shown as a current asset.

Advertisement

Sign up free to unlock

  • Score tracking
  • Practice history
  • Saved questions
  • Progress dashboard
  • Personalized sessions
  • Weak-topic breakdown

…and/or go further with premium services and No Ads.