Post Utme Mountain Top University 2023 Accounting Question 13

Practice objective / multiple choice question 13 from the 2023 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2023 Accounting Objective / Multiple Choice
Question 13 POST_UTME_MOUNTAIN_TOP_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 Purchases ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases Assets and Decreases Liabilities
B. Increases Liabilities and Decreases Assets
C. Increases Equity and Decreases Assets
Correct Answer D. Increases Assets and Decreases Equity
Correct Answer
D
Correct Option:
Increases Assets and Decreases Equity

About This Question

This is Post Utme Mountain Top University 2023 Accounting Question 13. It is one of the objective questions from the 2023 Post Utme Mountain Top University Accounting examination.

View More Post Utme Mountain Top University 2023 Accounting Questions More Post Utme Mountain Top University 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