Post Utme Unilag 2020 Accounting Question 34

Practice objective / multiple choice question 34 from the 2020 Post Utme Unilag Accounting examination.

Post Utme Unilag 2020 Accounting Objective / Multiple Choice
Question 34 POST_UTME_UNILAG • 2020 • ACCOUNTING • objective

A company uses the accrual method of accounting. If the company purchases goods on credit for ₦50,000, what is the effect on the company's net income?

Answer Options

A. Increase net income by ₦50,000
B. Decrease net income by ₦50,000
Correct Answer C. No effect on net income
D. Increase net income by ₦25,000
Correct Answer
C
Correct Option:
No effect on net income

About This Question

This is Post Utme Unilag 2020 Accounting Question 34. 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