Post Utme Igbinedion University 2024 Accounting Question 3

Practice objective / multiple choice question 3 from the 2024 Post Utme Igbinedion University Accounting examination.

Post Utme Igbinedion University 2024 Accounting Objective / Multiple Choice
Question 3 POST_UTME_IGBINEDION_UNIVERSITY • 2024 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company purchases an asset for ₦50,000 and pays for it in cash, what is the effect on the accounting equation?

Answer Options

A. Assets increase by ₦50,000 and Liabilities decrease by ₦50,000
Correct Answer B. Assets increase by ₦50,000 and Equity increases by ₦50,000
C. Assets decrease by ₦50,000 and Liabilities increase by ₦50,000
D. Assets decrease by ₦50,000 and Equity decreases by ₦50,000
Correct Answer
B
Correct Option:
Assets increase by ₦50,000 and Equity increases by ₦50,000

About This Question

This is Post Utme Igbinedion University 2024 Accounting Question 3. It is one of the objective questions from the 2024 Post Utme Igbinedion University Accounting examination.

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