Post Utme Joseph Ayo Babalola University 2017 Accounting Question 26

Practice objective / multiple choice question 26 from the 2017 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2017 Accounting Objective / Multiple Choice
Question 26 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The company's ledger contains the following entries: Debit: Raw Materials ₦ 10,000; Credit: Purchases ₦ 10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

Correct Answer A. Increase in Raw Materials and decrease in Purchases
B. Increase in Purchases and decrease in Raw Materials
C. No effect on Raw Materials and Purchases
D. Increase in Raw Materials and increase in Purchases
Correct Answer
A
Correct Option:
Increase in Raw Materials and decrease in Purchases

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Accounting Question 26. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Accounting examination.

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