Post Utme Futo 2024 Accounting Question 38

Practice objective / multiple choice question 38 from the 2024 Post Utme Futo Accounting examination.

Post Utme Futo 2024 Accounting Objective / Multiple Choice
Question 38 POST_UTME_FUTO • 2024 • ACCOUNTING • objective

A firm uses the double-entry system of accounting. If it debits an asset account by ₦50,000 and credits a liability account by ₦30,000, what is the net effect on the firm's equity?

Answer Options

A. Increase by ₦20,000
Correct Answer B. Decrease by ₦20,000
C. No effect
D. Increase by ₦20,000 and decrease by ₦20,000
Correct Answer
B
Correct Option:
Decrease by ₦20,000

About This Question

This is Post Utme Futo 2024 Accounting Question 38. It is one of the objective questions from the 2024 Post Utme Futo Accounting examination.

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