Post Utme Elizade University 2020 Accounting Question 17

Practice objective / multiple choice question 17 from the 2020 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2020 Accounting Objective / Multiple Choice
Question 17 POST_UTME_ELIZADE_UNIVERSITY • 2020 • ACCOUNTING • objective

A company has a trial balance that includes the following accounts: Cash, Accounts Receivable, Inventory, and Equipment. The trial balance shows a debit balance of ₦1,500,000 for Cash and a credit balance of ₦2,000,000 for Accounts Receivable. What is the net effect on the accounting equation?

Answer Options

A. Increase in assets and decrease in liabilities
B. Decrease in assets and increase in liabilities
Correct Answer C. Increase in assets and increase in liabilities
D. Decrease in assets and decrease in liabilities
Correct Answer
C
Correct Option:
Increase in assets and increase in liabilities

About This Question

This is Post Utme Elizade University 2020 Accounting Question 17. It is one of the objective questions from the 2020 Post Utme Elizade University Accounting examination.

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