Post Utme Oau 2017 Accounting Question 3

Practice objective / multiple choice question 3 from the 2017 Post Utme Oau Accounting examination.

Post Utme Oau 2017 Accounting Objective / Multiple Choice
Question 3 POST_UTME_OAU • 2017 • ACCOUNTING • objective

A company uses the single entry system to record its transactions. The company receives a cash payment of ₦20,000. What is the effect on the accounting equation?

Answer Options

A. Assets increase by ₦20,000 and liabilities decrease by ₦20,000.
Correct Answer B. Assets increase by ₦20,000 and equity increases by ₦20,000.
C. Assets decrease by ₦20,000 and liabilities increase by ₦20,000.
D. Assets decrease by ₦20,000 and equity decreases by ₦20,000.
Correct Answer
B
Correct Option:
Assets increase by ₦20,000 and equity increases by ₦20,000.

About This Question

This is Post Utme Oau 2017 Accounting Question 3. It is one of the objective questions from the 2017 Post Utme Oau Accounting examination.

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