Post Utme Futa 2021 Accounting Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Futa Accounting examination.

Post Utme Futa 2021 Accounting Objective / Multiple Choice
Question 1 POST_UTME_FUTA • 2021 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is 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 assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Has no effect on the accounting equation
Correct Answer
A
Correct Option:
Increases assets and decreases liabilities

About This Question

This is Post Utme Futa 2021 Accounting Question 1. It is one of the objective questions from the 2021 Post Utme Futa Accounting examination.

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