Post Utme Lead City University 2018 Accounting Question 9

Practice objective / multiple choice question 9 from the 2018 Post Utme Lead City University Accounting examination.

Post Utme Lead City University 2018 Accounting Objective / Multiple Choice
Question 9 POST_UTME_LEAD_CITY_UNIVERSITY • 2018 • ACCOUNTING • objective

A company uses the double entry system of accounting. If a customer pays ₦10,000 for goods sold, what is the effect on the accounting equation?

Answer Options

A. Assets increase by ₦10,000 and liabilities decrease by ₦10,000
B. Assets decrease by ₦10,000 and liabilities increase by ₦10,000
Correct Answer C. Assets increase by ₦10,000 and equity increases by ₦10,000
D. Assets decrease by ₦10,000 and equity decreases by ₦10,000
Correct Answer
C
Correct Option:
Assets increase by ₦10,000 and equity increases by ₦10,000

About This Question

This is Post Utme Lead City University 2018 Accounting Question 9. It is one of the objective questions from the 2018 Post Utme Lead City University Accounting examination.

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