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.
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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.
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