Post Utme Abu 2020 Accounting Question 23

Practice objective / multiple choice question 23 from the 2020 Post Utme Abu Accounting examination.

Post Utme Abu 2020 Accounting Objective / Multiple Choice
Question 23 POST_UTME_ABU • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the accounting equation?

Answer Options

Correct Answer A. Increases Assets and Decreases Liabilities
B. Increases Assets and Increases Liabilities
C. Decreases Assets and Decreases Liabilities
D. Decreases Assets and Increases Liabilities
Correct Answer
A
Correct Option:
Increases Assets and Decreases Liabilities

About This Question

This is Post Utme Abu 2020 Accounting Question 23. It is one of the objective questions from the 2020 Post Utme Abu Accounting examination.

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