Post Utme Noun 2017 Accounting Question 17

Practice objective / multiple choice question 17 from the 2017 Post Utme Noun Accounting examination.

Post Utme Noun 2017 Accounting Objective / Multiple Choice

Question 17 POST_UTME_NOUN • 2017 • ACCOUNTING • objective

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000. What is the net effect of these balances on the company's financial position?

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

Correct Option:

Increases assets and decreases liabilities.

This is Post Utme Noun 2017 Accounting Question 17. It is one of the objective questions from the 2017 Post Utme Noun Accounting examination.

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