Post Utme Rsu 2017 Accounting Question 17

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

Post Utme Rsu 2017 Accounting Objective / Multiple Choice
Question 17 POST_UTME_RSU • 2017 • ACCOUNTING • objective

A government agency uses the double-entry system to record its financial transactions. The journal entry for the purchase of a vehicle is as follows: Debit: Vehicle ₦500,000, Credit: Cash ₦500,000. What is the effect of this transaction on the agency's financial position?

Answer Options

A. The agency's assets increase by ₦500,000.
B. The agency's liabilities increase by ₦500,000.
Correct Answer C. The agency's equity increases by ₦500,000.
D. The agency's financial position remains unchanged.
Correct Answer
C
Correct Option:
The agency's equity increases by ₦500,000.

About This Question

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

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