Post Utme Aaua 2019 Accounting Question 4

Practice objective / multiple choice question 4 from the 2019 Post Utme Aaua Accounting examination.

Post Utme Aaua 2019 Accounting Objective / Multiple Choice
Question 4 POST_UTME_AAUA • 2019 • ACCOUNTING • objective

A government agency uses the accrual basis of accounting. It records the following transactions: Debit Salaries ₦50,000, Credit Salaries Expense ₦50,000. What is the effect of this transaction on the agency's financial statements?

Answer Options

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

About This Question

This is Post Utme Aaua 2019 Accounting Question 4. It is one of the objective questions from the 2019 Post Utme Aaua Accounting examination.

View More Post Utme Aaua 2019 Accounting Questions More Post Utme Aaua Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support