Post Utme Rsu 2017 Accounting Question 18

Practice objective / multiple choice question 18 from the 2017 Post Utme Rsu Accounting examination.

Post Utme Rsu 2017 Accounting Objective / Multiple Choice
Question 18 POST_UTME_RSU • 2017 • ACCOUNTING • objective

A manufacturing company uses the departmental accounting system to record its financial transactions. The company has two departments: Production and Administration. The journal entry for the purchase of raw materials is as follows: Debit: Raw Materials ₦200,000, Credit: Production Department ₦200,000. What is the effect of this transaction on the company's financial position?

Answer Options

A. The company's assets increase by ₦200,000.
B. The company's liabilities increase by ₦200,000.
Correct Answer C. The company's equity increases by ₦200,000.
D. The company's financial position remains unchanged.
Correct Answer
C
Correct Option:
The company's equity increases by ₦200,000.

About This Question

This is Post Utme Rsu 2017 Accounting Question 18. It is one of the objective questions from the 2017 Post Utme Rsu Accounting examination.

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