Post Utme Achievers University 2019 Accounting Question 34

Practice objective / multiple choice question 34 from the 2019 Post Utme Achievers University Accounting examination.

Post Utme Achievers University 2019 Accounting Objective / Multiple Choice
Question 34 POST_UTME_ACHIEVERS_UNIVERSITY • 2019 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The company's journal entry for a sale on credit is: Debit Sales Revenue 1,000, Credit Accounts Receivable 1,000. What is the effect of this journal entry on the company's financial statements?

Answer Options

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

About This Question

This is Post Utme Achievers University 2019 Accounting Question 34. It is one of the objective questions from the 2019 Post Utme Achievers University Accounting examination.

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