Post Utme Summit University 2024 Accounting Question 35

Practice objective / multiple choice question 35 from the 2024 Post Utme Summit University Accounting examination.

Post Utme Summit University 2024 Accounting Objective / Multiple Choice
Question 35 POST_UTME_SUMMIT_UNIVERSITY • 2024 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's accountant has recorded the following transactions in the journal: Debit: Cash 10,000; Credit: Accounts Payable 10,000. What is the effect of this transaction on the accounting equation?

Answer Options

Correct Answer A. Increases both assets and liabilities
B. Decreases both assets and liabilities
C. Increases assets and decreases liabilities
D. Decreases assets and increases liabilities
Correct Answer
A
Correct Option:
Increases both assets and liabilities

About This Question

This is Post Utme Summit University 2024 Accounting Question 35. It is one of the objective questions from the 2024 Post Utme Summit University Accounting examination.

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