Post Utme Abu 2020 Accounting Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Abu Accounting examination.

Post Utme Abu 2020 Accounting Objective / Multiple Choice
Question 36 POST_UTME_ABU • 2020 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry was made: Debit: Purchases 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
Correct Answer D. No effect on the accounting equation
Correct Answer
D
Correct Option:
No effect on the accounting equation

About This Question

This is Post Utme Abu 2020 Accounting Question 36. It is one of the objective questions from the 2020 Post Utme Abu Accounting examination.

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