Post Utme Uniosun 2023 Accounting Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Uniosun Accounting examination.

Post Utme Uniosun 2023 Accounting Objective / Multiple Choice
Question 11 POST_UTME_UNIOSUN • 2023 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is made: Debit: Cash 500, Credit: Accounts Payable 500. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases assets and decreases liabilities
Correct Answer B. Increases liabilities and decreases assets
C. Increases equity and decreases liabilities
D. Increases assets and decreases equity
Correct Answer
B
Correct Option:
Increases liabilities and decreases assets

About This Question

This is Post Utme Uniosun 2023 Accounting Question 11. It is one of the objective questions from the 2023 Post Utme Uniosun Accounting examination.

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