Post Utme Covenant University 2023 Accounting Question 18

Practice objective / multiple choice question 18 from the 2023 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2023 Accounting Objective / Multiple Choice
Question 18 POST_UTME_COVENANT_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's journal entry for the purchase of equipment on 1st January 2022 is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

A. Increase in Assets and Increase in Liabilities
Correct Answer B. Increase in Assets and Decrease in Liabilities
C. Decrease in Assets and Increase in Liabilities
D. Decrease in Assets and Decrease in Liabilities
Correct Answer
B
Correct Option:
Increase in Assets and Decrease in Liabilities

About This Question

This is Post Utme Covenant University 2023 Accounting Question 18. It is one of the objective questions from the 2023 Post Utme Covenant University Accounting examination.

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