Post Utme Caleb University 2022 Accounting Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2022 Accounting Objective / Multiple Choice
Question 16 POST_UTME_CALEB_UNIVERSITY • 2022 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The journal entry for the purchase of equipment on credit is as follows: Debit Equipment 10,000 and Credit Accounts Payable 10,000. What is the effect of this transaction on the accounting equation?

Answer Options

Correct Answer A. Increases Assets and Decreases Liabilities
B. Increases Assets and Increases Liabilities
C. Decreases Assets and Decreases Liabilities
D. Decreases Assets and Increases Liabilities
Correct Answer
A
Correct Option:
Increases Assets and Decreases Liabilities

About This Question

This is Post Utme Caleb University 2022 Accounting Question 16. It is one of the objective questions from the 2022 Post Utme Caleb University Accounting examination.

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