Post Utme Nile University 2023 Accounting Question 41

Practice objective / multiple choice question 41 from the 2023 Post Utme Nile University Accounting examination.

Post Utme Nile University 2023 Accounting Objective / Multiple Choice
Question 41 POST_UTME_NILE_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The company's journal entry for the sale of merchandise on January 25, 2023, is as follows: Debit Sales 10,000 and Credit Accounts Receivable 10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

A. ₦10,000 increase in assets and ₦10,000 increase in liabilities
Correct Answer B. ₦10,000 increase in assets and ₦10,000 decrease 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
B
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 41. It is one of the objective questions from the 2023 Post Utme Nile University Accounting examination.

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