Post Utme Aaua 2019 Accounting Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Aaua Accounting examination.

Post Utme Aaua 2019 Accounting Objective / Multiple Choice
Question 2 POST_UTME_AAUA • 2019 • ACCOUNTING • objective

A company uses the double-entry system of accounting. It records the following transactions: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

Correct Answer A. Increase in Cash and decrease in Purchases
B. Decrease in Cash and increase in Purchases
C. No effect on Cash and Purchases
D. Increase in Purchases and decrease in Cash
Correct Answer
A
Correct Option:
Increase in Cash and decrease in Purchases

About This Question

This is Post Utme Aaua 2019 Accounting Question 2. It is one of the objective questions from the 2019 Post Utme Aaua Accounting examination.

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