Post Utme Skyline University 2022 Accounting Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2022 Accounting Objective / Multiple Choice
Question 36 POST_UTME_SKYLINE_UNIVERSITY • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company's journal entry for the purchase of an asset is Debit Asset ₦100,000, Credit Cash ₦100,000, what is the effect on the company's ledger accounts?

Answer Options

Correct Answer A. The Asset account will increase by ₦100,000 and the Cash account will decrease by ₦100,000
B. The Asset account will decrease by ₦100,000 and the Cash account will increase by ₦100,000
C. The Asset account will increase by ₦100,000 and the Cash account will increase by ₦100,000
D. The Asset account will decrease by ₦100,000 and the Cash account will decrease by ₦100,000
Correct Answer
A
Correct Option:
The Asset account will increase by ₦100,000 and the Cash account will decrease by ₦100,000

About This Question

This is Post Utme Skyline University 2022 Accounting Question 36. It is one of the objective questions from the 2022 Post Utme Skyline University Accounting examination.

View More Post Utme Skyline University 2022 Accounting Questions More Post Utme Skyline University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support