Post Utme Summit University 2023 Accounting Question 33

Practice objective / multiple choice question 33 from the 2023 Post Utme Summit University Accounting examination.

Post Utme Summit University 2023 Accounting Objective / Multiple Choice
Question 33 POST_UTME_SUMMIT_UNIVERSITY • 2023 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The following transactions were recorded in the journal: 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 Assets and Decreases Liabilities
B. Increases Liabilities and Decreases Assets
C. Increases Equity and Decreases Assets
D. Increases Assets and Decreases Equity
Correct Answer
A
Correct Option:
Increases Assets and Decreases Liabilities

About This Question

This is Post Utme Summit University 2023 Accounting Question 33. It is one of the objective questions from the 2023 Post Utme Summit University Accounting examination.

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