Post Utme Joseph Ayo Babalola University 2017 Accounting Question 31

Practice objective / multiple choice question 31 from the 2017 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2017 Accounting Objective / Multiple Choice

Question 31 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. If the company purchases office supplies for ₦12,000, what is the effect on the accounting equation?

Answer Options

A. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Cash.

B. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Accounts Payable.

Correct Answer C. ₦12,000 is debited to Cash and ₦12,000 is credited to Office Supplies.

D. ₦12,000 is debited to Office Supplies and ₦12,000 is credited to Accounts Receivable.

Correct Answer

Correct Option:

₦12,000 is debited to Cash and ₦12,000 is credited to Office Supplies.

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Accounting Question 31. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Accounting examination.

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