Post Utme Ims U 2024 Accounting Question 29

Practice objective / multiple choice question 29 from the 2024 Post Utme Ims U Accounting examination.

Post Utme Ims U 2024 Accounting Objective / Multiple Choice
Question 29 POST_UTME_IMS_U • 2024 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is made: Debit Cash 1,000, Credit Accounts Payable 1,000. 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. Increases equity and decreases liabilities
Correct Answer
D
Correct Option:
Increases equity and decreases liabilities

About This Question

This is Post Utme Ims U 2024 Accounting Question 29. It is one of the objective questions from the 2024 Post Utme Ims U Accounting examination.

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