Post Utme Ui 2022 Accounting Question 7

Practice objective / multiple choice question 7 from the 2022 Post Utme Ui Accounting examination.

Post Utme Ui 2022 Accounting Objective / Multiple Choice
Question 7 POST_UTME_UI • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Purchases ₦15,000. What is the effect of this transaction on the accounting equation?

Answer Options

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

About This Question

This is Post Utme Ui 2022 Accounting Question 7. It is one of the objective questions from the 2022 Post Utme Ui Accounting examination.

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