Post Utme Oau 2017 Accounting Question 2

Practice objective / multiple choice question 2 from the 2017 Post Utme Oau Accounting examination.

Post Utme Oau 2017 Accounting Objective / Multiple Choice

Question 2 POST_UTME_OAU • 2017 • ACCOUNTING • objective

A company uses the double entry system to record its transactions. The company purchases office equipment for ₦50,000. What is the effect on the accounting equation?

A. Assets increase by ₦50,000 and liabilities decrease by ₦50,000.

Correct Answer B. Assets increase by ₦50,000 and equity increases by ₦50,000.

C. Assets decrease by ₦50,000 and liabilities increase by ₦50,000.

D. Assets decrease by ₦50,000 and equity decreases by ₦50,000.

Correct Answer

Correct Option:

Assets increase by ₦50,000 and equity increases by ₦50,000.

This is Post Utme Oau 2017 Accounting Question 2. It is one of the objective questions from the 2017 Post Utme Oau Accounting examination.

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