Post Utme Unilag 2023 Accounting Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Unilag Accounting examination.

Post Utme Unilag 2023 Accounting Objective / Multiple Choice
Question 38 POST_UTME_UNILAG • 2023 • ACCOUNTING • objective

A company uses the accrual method of accounting. The company's accountant has recorded the following transactions in the journal: Debit: Accounts Payable 5,000, Credit: Cash 5,000 What is the correct journal entry for the purchase of equipment?

Answer Options

A. Debit Equipment 5,000, Credit Cash 5,000
Correct Answer B. Debit Equipment 5,000, Credit Accounts Payable 5,000
C. Debit Equipment 5,000, Credit Common Stock 5,000
D. Debit Equipment 5,000, Credit Retained Earnings 5,000
Correct Answer
B
Correct Option:
Debit Equipment 5,000, Credit Accounts Payable 5,000

About This Question

This is Post Utme Unilag 2023 Accounting Question 38. It is one of the objective questions from the 2023 Post Utme Unilag Accounting examination.

View More Post Utme Unilag 2023 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