Post Utme Nile University 2025 Accounting Question 20

Practice objective / multiple choice question 20 from the 2025 Post Utme Nile University Accounting examination.

Post Utme Nile University 2025 Accounting Objective / Multiple Choice
Question 20 POST_UTME_NILE_UNIVERSITY • 2025 • ACCOUNTING • objective

A company uses the cash basis of accounting. The company's ledger shows the following transactions: Debit Cash ₦300,000, Credit Accounts Payable ₦300,000. What is the effect of this transaction on the company's financial position?

Answer Options

Correct Answer A. The company's cash balance increases by ₦300,000.
B. The company's accounts payable balance increases by ₦300,000.
C. The company's cash balance decreases by ₦300,000.
D. The company's accounts payable balance decreases by ₦300,000.
Correct Answer
A
Correct Option:
The company's cash balance increases by ₦300,000.

About This Question

This is Post Utme Nile University 2025 Accounting Question 20. It is one of the objective questions from the 2025 Post Utme Nile University Accounting examination.

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