Post Utme Al Hikmah University 2021 Accounting Question 19

Practice objective / multiple choice question 19 from the 2021 Post Utme Al Hikmah University Accounting examination.

Post Utme Al Hikmah University 2021 Accounting Objective / Multiple Choice
Question 19 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the double-entry system to record its financial transactions. The company has a debit balance of ₦100,000 in the asset account and a credit balance of ₦150,000 in the liability account. What is the net effect on the company's equity?

Answer Options

A. Increase in equity by ₦50,000
Correct Answer B. Decrease in equity by ₦50,000
C. No effect on equity
D. Increase in equity by ₦50,000 and decrease in equity by ₦50,000
Correct Answer
B
Correct Option:
Decrease in equity by ₦50,000

About This Question

This is Post Utme Al Hikmah University 2021 Accounting Question 19. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Accounting examination.

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