Post Utme Bsu 2022 Accounting Question 13

Practice objective / multiple choice question 13 from the 2022 Post Utme Bsu Accounting examination.

Post Utme Bsu 2022 Accounting Objective / Multiple Choice
Question 13 POST_UTME_BSU • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's ledger shows the following transactions: Debit Cash ₦1,000, Credit Accounts Payable ₦1,000. What is the effect of this transaction on the company's financial position?

Answer Options

A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
Correct Answer C. Increases liabilities and decreases assets
D. Has no effect on the company's financial position
Correct Answer
C
Correct Option:
Increases liabilities and decreases assets

About This Question

This is Post Utme Bsu 2022 Accounting Question 13. It is one of the objective questions from the 2022 Post Utme Bsu Accounting examination.

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