Post Utme Abu 2018 Accounting Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Abu Accounting examination.

Post Utme Abu 2018 Accounting Objective / Multiple Choice
Question 16 POST_UTME_ABU • 2018 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is made: Debit: Office Expenses, ₦10,000; Credit: Cash, ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases both assets and liabilities
B. Decreases both assets and liabilities
Correct Answer C. Increases assets and decreases liabilities
D. Decreases assets and increases liabilities
Correct Answer
C
Correct Option:
Increases assets and decreases liabilities

About This Question

This is Post Utme Abu 2018 Accounting Question 16. It is one of the objective questions from the 2018 Post Utme Abu Accounting examination.

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