Post Utme Ui 2023 Accounting Question 4

Practice objective / multiple choice question 4 from the 2023 Post Utme Ui Accounting examination.

Post Utme Ui 2023 Accounting Objective / Multiple Choice
Question 4 POST_UTME_UI • 2023 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's journal entry for the purchase of a piece of equipment is as follows: Debit Equipment ₦80,000 and Credit Accounts Payable ₦80,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

A. The company's assets increase by ₦80,000
Correct Answer B. The company's liabilities increase by ₦80,000
C. The company's equity increases by ₦80,000
D. The company's assets decrease by ₦80,000
Correct Answer
B
Correct Option:
The company's liabilities increase by ₦80,000

About This Question

This is Post Utme Ui 2023 Accounting Question 4. It is one of the objective questions from the 2023 Post Utme Ui Accounting examination.

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