Post Utme Rsu 2017 Accounting Question 19

Practice objective / multiple choice question 19 from the 2017 Post Utme Rsu Accounting examination.

Post Utme Rsu 2017 Accounting Objective / Multiple Choice
Question 19 POST_UTME_RSU • 2017 • ACCOUNTING • objective

A public sector organization uses the control account system to record its financial transactions. The organization has a control account for its cash. The journal entry for the receipt of cash is as follows: Debit: Cash ₦100,000, Credit: Cash Control Account ₦100,000. What is the effect of this transaction on the organization's financial position?

Answer Options

A. The organization's assets increase by ₦100,000.
B. The organization's liabilities increase by ₦100,000.
Correct Answer C. The organization's equity increases by ₦100,000.
D. The organization's financial position remains unchanged.
Correct Answer
C
Correct Option:
The organization's equity increases by ₦100,000.

About This Question

This is Post Utme Rsu 2017 Accounting Question 19. It is one of the objective questions from the 2017 Post Utme Rsu Accounting examination.

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