Post Utme Elizade University 2023 Accounting Question 25

Practice objective / multiple choice question 25 from the 2023 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2023 Accounting Objective / Multiple Choice
Question 25 POST_UTME_ELIZADE_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's income statement shows the following balances: Sales Revenue ₦30,000, Cost of Goods Sold ₦20,000. What is the effect of these balances 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. Increases equity and decreases liabilities
Correct Answer
D
Correct Option:
Increases equity and decreases liabilities

About This Question

This is Post Utme Elizade University 2023 Accounting Question 25. It is one of the objective questions from the 2023 Post Utme Elizade University Accounting examination.

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