Post Utme Lead City University 2020 Accounting Question 23

Practice objective / multiple choice question 23 from the 2020 Post Utme Lead City University Accounting examination.

Post Utme Lead City University 2020 Accounting Objective / Multiple Choice
Question 23 POST_UTME_LEAD_CITY_UNIVERSITY • 2020 • ACCOUNTING • objective

A business uses the double-entry system of accounting. The company's ledger shows a debit of ₦80,000 to the asset account 'Machinery' and a credit of ₦80,000 to the expense account 'Depreciation'. What is the effect of this transaction on the company's net income?

Answer Options

A. Increase net income by ₦80,000
Correct Answer B. Decrease net income by ₦80,000
C. No effect on net income
D. Increase net income by ₦40,000
Correct Answer
B
Correct Option:
Decrease net income by ₦80,000

About This Question

This is Post Utme Lead City University 2020 Accounting Question 23. It is one of the objective questions from the 2020 Post Utme Lead City University Accounting examination.

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