Post Utme Skyline University 2022 Accounting Question 9

Practice objective / multiple choice question 9 from the 2022 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2022 Accounting Objective / Multiple Choice
Question 9 POST_UTME_SKYLINE_UNIVERSITY • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. What is the effect on its accounting equation when it purchases an asset of ₦50,000?

Answer Options

A. ₦50,000 increase in assets and ₦50,000 increase in liabilities
Correct Answer B. ₦50,000 increase in assets and ₦50,000 decrease in equity
C. ₦50,000 increase in liabilities and ₦50,000 decrease in equity
D. ₦50,000 decrease in assets and ₦50,000 decrease in liabilities
Correct Answer
B
Correct Option:
₦50,000 increase in assets and ₦50,000 decrease in equity

About This Question

This is Post Utme Skyline University 2022 Accounting Question 9. It is one of the objective questions from the 2022 Post Utme Skyline University Accounting examination.

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