Post Utme Futo 2018 Accounting Question 8

Practice objective / multiple choice question 8 from the 2018 Post Utme Futo Accounting examination.

Post Utme Futo 2018 Accounting Objective / Multiple Choice
Question 8 POST_UTME_FUTO • 2018 • 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 Futo 2018 Accounting Question 8. It is one of the objective questions from the 2018 Post Utme Futo Accounting examination.

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