Post Utme Skyline University 2018 Accounting Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2018 Accounting Objective / Multiple Choice
Question 5 POST_UTME_SKYLINE_UNIVERSITY • 2018 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The following journal entry is made: Debit: Depreciation Expense 1,000, Credit: Accumulated Depreciation 1,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases both assets and liabilities
B. Increases assets and decreases liabilities
Correct Answer C. Decreases assets and increases liabilities
D. Has no effect on the accounting equation
Correct Answer
C
Correct Option:
Decreases assets and increases liabilities

About This Question

This is Post Utme Skyline University 2018 Accounting Question 5. It is one of the objective questions from the 2018 Post Utme Skyline University Accounting examination.

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