Post Utme Unilag 2021 Accounting Question 10

Practice objective / multiple choice question 10 from the 2021 Post Utme Unilag Accounting examination.

Post Utme Unilag 2021 Accounting Objective / Multiple Choice
Question 10 POST_UTME_UNILAG • 2021 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The company's journal shows the following entry: 'Debit Cash ₦100,000, Credit Office Supplies ₦100,000'. What is the effect of this entry on the company's financial statements?

Answer Options

Correct Answer A. The entry will increase the company's cash balance and decrease its office supplies balance.
B. The entry will decrease the company's cash balance and increase its office supplies balance.
C. The entry will have no effect on the company's financial statements.
D. The entry will increase the company's office supplies balance and decrease its cash balance.
Correct Answer
A
Correct Option:
The entry will increase the company's cash balance and decrease its office supplies balance.

About This Question

This is Post Utme Unilag 2021 Accounting Question 10. It is one of the objective questions from the 2021 Post Utme Unilag Accounting examination.

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