Post Utme Futa 2019 Accounting Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Futa Accounting examination.

Post Utme Futa 2019 Accounting Objective / Multiple Choice
Question 1 POST_UTME_FUTA • 2019 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry was made: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?

Answer Options

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

About This Question

This is Post Utme Futa 2019 Accounting Question 1. It is one of the objective questions from the 2019 Post Utme Futa Accounting examination.

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