Post Utme Unilag 2020 Accounting Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Unilag Accounting examination.

Post Utme Unilag 2020 Accounting Objective / Multiple Choice
Question 21 POST_UTME_UNILAG • 2020 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The following journal entry was made: 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. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities
Correct Answer
A
Correct Option:
Increases assets and decreases liabilities

About This Question

This is Post Utme Unilag 2020 Accounting Question 21. It is one of the objective questions from the 2020 Post Utme Unilag Accounting examination.

View More Post Utme Unilag 2020 Accounting Questions More Post Utme Unilag Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support