Post Utme Ksu 2021 Accounting Question 18

Practice objective / multiple choice question 18 from the 2021 Post Utme Ksu Accounting examination.

Post Utme Ksu 2021 Accounting Objective / Multiple Choice
Question 18 POST_UTME_KSU • 2021 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's journal entry for the purchase of equipment on 1st January, 2020, is as follows: Debit Equipment ₦1,000,000 and Credit Cash ₦1,000,000. What is the effect of this journal entry on the company's assets?

Answer Options

A. Increase in Cash and decrease in Equipment
Correct Answer B. Increase in Equipment and decrease in Cash
C. No effect on Cash and increase in Equipment
D. Decrease in Cash and increase in Equipment
Correct Answer
B
Correct Option:
Increase in Equipment and decrease in Cash

About This Question

This is Post Utme Ksu 2021 Accounting Question 18. It is one of the objective questions from the 2021 Post Utme Ksu Accounting examination.

View More Post Utme Ksu 2021 Accounting Questions More Post Utme Ksu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support