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UI Post-UTME Financial Accounting 2025 (Model questions) Question 1

Question 1

Final Accounts of a Sole Trader

Which of the following items appear only in the balance sheet and NOT in the income statement?
I. Accumulated depreciation
II. Accrued expenses
III. Bad debt expense
IV. Share capital

  1. A.I and II only
  2. B.I, II and IV only
  3. C.III and IV only
  4. D.I only
Show the answer and explanation

Answer: B (I, II and IV only)

Explanation

Accumulated depreciation, accrued expenses and share capital are balance sheet items; bad debts are an expense in the income statement.