Post Utme Unilag 2024 Accounting Question 12

Practice objective / multiple choice question 12 from the 2024 Post Utme Unilag Accounting examination.

Post Utme Unilag 2024 Accounting Objective / Multiple Choice
Question 12 POST_UTME_UNILAG • 2024 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If it purchases office equipment for ₦120,000 cash, what is the effect on the accounting equation?

Answer Options

A. Assets increase by ₦120,000 and equity decreases by ₦120,000
Correct Answer B. Assets increase by ₦120,000 and equity increases by ₦120,000
C. Assets decrease by ₦120,000 and equity increases by ₦120,000
D. Assets decrease by ₦120,000 and equity decreases by ₦120,000
Correct Answer
B
Correct Option:
Assets increase by ₦120,000 and equity increases by ₦120,000

About This Question

This is Post Utme Unilag 2024 Accounting Question 12. It is one of the objective questions from the 2024 Post Utme Unilag Accounting examination.

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