Post Utme Noun 2018 Accounting Question 25

Practice objective / multiple choice question 25 from the 2018 Post Utme Noun Accounting examination.

Post Utme Noun 2018 Accounting Objective / Multiple Choice
Question 25 POST_UTME_NOUN • 2018 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If a customer pays ₦10,000 cash for a product, what is the effect on the accounting equation?

Answer Options

A. Assets increase by ₦10,000, and liabilities decrease by ₦10,000
B. Assets decrease by ₦10,000, and liabilities increase by ₦10,000
Correct Answer C. Assets increase by ₦10,000, and equity increases by ₦10,000
D. Assets decrease by ₦10,000, and equity decreases by ₦10,000
Correct Answer
C
Correct Option:
Assets increase by ₦10,000, and equity increases by ₦10,000

About This Question

This is Post Utme Noun 2018 Accounting Question 25. It is one of the objective questions from the 2018 Post Utme Noun Accounting examination.

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