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UI Post-UTME Financial Accounting 2024 (Model questions) Question 9

Question 9

Final Accounts of a Sole Trader

Which of the following is not an asset

  1. A.Goodwill
  2. B.General reserves
  3. C.Debtors
  4. D.Prepayments
Show the answer and explanation

Answer: B (General reserves)

Explanation

A general reserve is part of owners' equity (a reserve of profits), not an asset.