Post Utme Skyline University 2018 Accounting Question 3

Practice objective / multiple choice question 3 from the 2018 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2018 Accounting Objective / Multiple Choice

Question 3 POST_UTME_SKYLINE_UNIVERSITY • 2018 • ACCOUNTING • objective

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

Answer Options

Correct Answer A. Increases both assets and liabilities

B. Increases assets and decreases liabilities

C. Decreases assets and increases liabilities

D. Has no effect on the accounting equation

Correct Answer

Correct Option:

Increases both assets and liabilities

About This Question

This is Post Utme Skyline University 2018 Accounting Question 3. It is one of the objective questions from the 2018 Post Utme Skyline University Accounting examination.

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