Post Utme Madonna University 2023 Accounting Question 7

Practice objective / multiple choice question 7 from the 2023 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2023 Accounting Objective / Multiple Choice
Question 7 POST_UTME_MADONNA_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

Correct Answer A. Assets increase by ₦10,000, Liabilities increase by ₦10,000
B. Assets decrease by ₦10,000, Liabilities decrease by ₦10,000
C. Assets increase by ₦10,000, Liabilities decrease by ₦10,000
D. Assets decrease by ₦10,000, Liabilities increase by ₦10,000
Correct Answer
A
Correct Option:
Assets increase by ₦10,000, Liabilities increase by ₦10,000

About This Question

This is Post Utme Madonna University 2023 Accounting Question 7. It is one of the objective questions from the 2023 Post Utme Madonna University Accounting examination.

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