Post Utme Mountain Top University 2023 Accounting Question 15

Practice objective / multiple choice question 15 from the 2023 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2023 Accounting Objective / Multiple Choice
Question 15 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the control account system. The following transactions are recorded: Debit Purchases ₦50,000, Credit Purchases Returns and Allowances ₦10,000. What is the effect of this transaction on the control account?

Answer Options

Correct Answer A. Increases Purchases and Decreases Purchases Returns and Allowances
B. Increases Purchases Returns and Allowances and Decreases Purchases
C. Increases Assets and Decreases Liabilities
D. Increases Liabilities and Decreases Assets
Correct Answer
A
Correct Option:
Increases Purchases and Decreases Purchases Returns and Allowances

About This Question

This is Post Utme Mountain Top University 2023 Accounting Question 15. It is one of the objective questions from the 2023 Post Utme Mountain Top University Accounting examination.

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