Post Utme Uniosun 2019 Accounting Question 15

Practice objective / multiple choice question 15 from the 2019 Post Utme Uniosun Accounting examination.

Post Utme Uniosun 2019 Accounting Objective / Multiple Choice
Question 15 POST_UTME_UNIOSUN • 2019 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The journal entry for the purchase of equipment on credit is as follows: Debit Equipment 10,000 and Credit Accounts Payable 10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases both assets and liabilities
Correct Answer B. Increases assets and decreases liabilities
C. Decreases assets and increases liabilities
D. Decreases both assets and liabilities
Correct Answer
B
Correct Option:
Increases assets and decreases liabilities

About This Question

This is Post Utme Uniosun 2019 Accounting Question 15. It is one of the objective questions from the 2019 Post Utme Uniosun Accounting examination.

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