Post Utme Redeemers University 2023 Accounting Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Redeemers University Accounting examination.

Post Utme Redeemers University 2023 Accounting Objective / Multiple Choice
Question 36 POST_UTME_REDEEMERS_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is recorded: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?

Answer Options

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

About This Question

This is Post Utme Redeemers University 2023 Accounting Question 36. It is one of the objective questions from the 2023 Post Utme Redeemers University Accounting examination.

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