Post Utme Unilag 2019 Accounting Question 17

Practice objective / multiple choice question 17 from the 2019 Post Utme Unilag Accounting examination.

Post Utme Unilag 2019 Accounting Objective / Multiple Choice
Question 17 POST_UTME_UNILAG • 2019 • ACCOUNTING • objective

A company uses the double entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Assets: ₦1,500,000; Liabilities: ₦800,000; Equity: ₦700,000 The company's accountant has prepared the following journal entry for the year: Debit: ₦200,000; Credit: ₦200,000 What is the effect of this journal entry on the company's financial position?

Answer Options

A. The company's assets will decrease by ₦200,000.
B. The company's liabilities will increase by ₦200,000.
C. The company's equity will decrease by ₦200,000.
Correct Answer D. The company's assets will increase by ₦200,000.
Correct Answer
D
Correct Option:
The company's assets will increase by ₦200,000.

About This Question

This is Post Utme Unilag 2019 Accounting Question 17. It is one of the objective questions from the 2019 Post Utme Unilag Accounting examination.

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