Post Utme Nile University 2023 Accounting Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Nile University Accounting examination.

Post Utme Nile University 2023 Accounting Objective / Multiple Choice
Question 38 POST_UTME_NILE_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The company's journal entry for the purchase of equipment on January 1, 2023, is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

Correct Answer A. ₦10,000 increase in assets and ₦10,000 decrease in liabilities
B. ₦10,000 increase in assets and ₦10,000 increase in liabilities
C. ₦10,000 decrease in assets and ₦10,000 decrease in liabilities
D. ₦10,000 increase in liabilities and ₦10,000 decrease in assets
Correct Answer
A
Correct Option:
₦10,000 increase in assets and ₦10,000 decrease in liabilities

About This Question

This is Post Utme Nile University 2023 Accounting Question 38. It is one of the objective questions from the 2023 Post Utme Nile University Accounting examination.

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