Post Utme Ims U 2018 Accounting Question 13

Practice objective / multiple choice question 13 from the 2018 Post Utme Ims U Accounting examination.

Post Utme Ims U 2018 Accounting Objective / Multiple Choice
Question 13 POST_UTME_IMS_U • 2018 • ACCOUNTING • objective

A company uses the double-entry system and maintains a ledger. The ledger shows the following transactions: Debit: ₦100,000, Credit: ₦120,000. What is the effect of this transaction on the company's equity?

Answer Options

A. The company's equity increases by ₦20,000.
Correct Answer B. The company's equity decreases by ₦20,000.
C. The company's equity remains unchanged.
D. The company's equity increases by ₦40,000.
Correct Answer
B
Correct Option:
The company's equity decreases by ₦20,000.

About This Question

This is Post Utme Ims U 2018 Accounting Question 13. It is one of the objective questions from the 2018 Post Utme Ims U Accounting examination.

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