Post Utme Elizade University 2023 Accounting Question 22

Practice objective / multiple choice question 22 from the 2023 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2023 Accounting Objective / Multiple Choice
Question 22 POST_UTME_ELIZADE_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
Correct Answer D. Decreases liabilities and increases equity
Correct Answer
D
Correct Option:
Decreases liabilities and increases equity

About This Question

This is Post Utme Elizade University 2023 Accounting Question 22. It is one of the objective questions from the 2023 Post Utme Elizade University Accounting examination.

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