Post Utme Covenant University 2018 Accounting Question 28

Practice objective / multiple choice question 28 from the 2018 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2018 Accounting Objective / Multiple Choice
Question 28 POST_UTME_COVENANT_UNIVERSITY • 2018 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The following journal entry was made on December 31, 2022: 'Dr. Cash A/c 10,000, Cr. Bank A/c 10,000'. What is the effect of this transaction on the company's cash and bank balances?

Answer Options

A. The company's cash balance increases by 10,000 and its bank balance decreases by 10,000.
Correct Answer B. The company's cash balance decreases by 10,000 and its bank balance increases by 10,000.
C. The company's cash balance remains the same and its bank balance remains the same.
D. The company's cash balance increases by 10,000 and its bank balance increases by 10,000.
Correct Answer
B
Correct Option:
The company's cash balance decreases by 10,000 and its bank balance increases by 10,000.

About This Question

This is Post Utme Covenant University 2018 Accounting Question 28. It is one of the objective questions from the 2018 Post Utme Covenant University Accounting examination.

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