Post Utme Abu 2020 Accounting Question 2

Practice objective / multiple choice question 2 from the 2020 Post Utme Abu Accounting examination.

Post Utme Abu 2020 Accounting Objective / Multiple Choice

Question 2 POST_UTME_ABU • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company purchases an asset for ₦100,000, what is the effect on the accounting equation?

A. Assets increase by ₦100,000 and Liabilities decrease by ₦100,000

Correct Answer B. Assets increase by ₦100,000 and Equity increase by ₦100,000

C. Assets decrease by ₦100,000 and Liabilities increase by ₦100,000

D. Assets decrease by ₦100,000 and Equity decrease by ₦100,000

Correct Answer

Correct Option:

Assets increase by ₦100,000 and Equity increase by ₦100,000

This is Post Utme Abu 2020 Accounting Question 2. It is one of the objective questions from the 2020 Post Utme Abu Accounting examination.

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