Post Utme Noun 2017 Accounting Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Noun Accounting examination.

Post Utme Noun 2017 Accounting Objective / Multiple Choice
Question 16 POST_UTME_NOUN • 2017 • 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

Correct Answer A. Increases assets and decreases liabilities.
B. Decreases assets and increases liabilities.
C. Increases liabilities and decreases equity.
D. Decreases liabilities and increases equity.
Correct Answer
A
Correct Option:
Increases assets and decreases liabilities.

About This Question

This is Post Utme Noun 2017 Accounting Question 16. It is one of the objective questions from the 2017 Post Utme Noun Accounting examination.

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