Post Utme Uniosun 2019 Accounting Question 27

Practice objective / multiple choice question 27 from the 2019 Post Utme Uniosun Accounting examination.

Post Utme Uniosun 2019 Accounting Objective / Multiple Choice
Question 27 POST_UTME_UNIOSUN • 2019 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. The accounting equation remains unchanged.
Correct Answer B. The asset account Cash is increased by ₦10,000.
C. The liability account Purchases is increased by ₦10,000.
D. The equity account Purchases is increased by ₦10,000.
Correct Answer
B
Correct Option:
The asset account Cash is increased by ₦10,000.

About This Question

This is Post Utme Uniosun 2019 Accounting Question 27. It is one of the objective questions from the 2019 Post Utme Uniosun Accounting examination.

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