Post Utme Unilag 2023 Accounting Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Unilag Accounting examination.

Post Utme Unilag 2023 Accounting Objective / Multiple Choice
Question 39 POST_UTME_UNILAG • 2023 • ACCOUNTING • objective

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

Answer Options

Correct Answer A. Debit Equipment 5,000, Credit Cash 5,000
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
A
Correct Option:
Debit Equipment 5,000, Credit Cash 5,000

About This Question

This is Post Utme Unilag 2023 Accounting Question 39. It is one of the objective questions from the 2023 Post Utme Unilag Accounting examination.

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