Post Utme Abu 2025 Accounting Question 6

Practice objective / multiple choice question 6 from the 2025 Post Utme Abu Accounting examination.

Post Utme Abu 2025 Accounting Objective / Multiple Choice
Question 6 POST_UTME_ABU • 2025 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The company's accountant has recorded the following transactions in the journal: Debit: Cash ¡ 10,000, Credit: Bank ¡ 10,000. What is the effect of this transaction on the company's cash and bank balances?

Answer Options

A. The cash balance increases by ¡ 10,000 and the bank balance decreases by ¡ 10,000.
B. The cash balance decreases by ¡ 10,000 and the bank balance increases by ¡ 10,000.
C. The cash balance remains unchanged and the bank balance increases by ¡ 10,000.
Correct Answer D. The cash balance increases by ¡ 10,000 and the bank balance remains unchanged.
Correct Answer
D
Correct Option:
The cash balance increases by ¡ 10,000 and the bank balance remains unchanged.

About This Question

This is Post Utme Abu 2025 Accounting Question 6. It is one of the objective questions from the 2025 Post Utme Abu Accounting examination.

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