Post Utme Futo 2018 Accounting Question 34

Practice objective / multiple choice question 34 from the 2018 Post Utme Futo Accounting examination.

Post Utme Futo 2018 Accounting Objective / Multiple Choice
Question 34 POST_UTME_FUTO • 2018 • ACCOUNTING • objective

A company has the following journal entry: Debit: Raw Materials: ₦50,000 Credit: Purchases: ₦50,000 What is the effect of this journal entry on the company's financial statements?

Answer Options

A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
Correct Answer C. Increases liabilities and decreases assets
D. No effect on financial statements
Correct Answer
C
Correct Option:
Increases liabilities and decreases assets

About This Question

This is Post Utme Futo 2018 Accounting Question 34. It is one of the objective questions from the 2018 Post Utme Futo Accounting examination.

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