Post Utme Unn 2022 Accounting Question 39

Practice objective / multiple choice question 39 from the 2022 Post Utme Unn Accounting examination.

Post Utme Unn 2022 Accounting Objective / Multiple Choice
Question 39 POST_UTME_UNN • 2022 • ACCOUNTING • objective

A company has the following transactions: Debit Common Stock 10,000, Credit Retained Earnings 10,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

Correct Answer A. Increase in Common Stock and decrease in Retained Earnings
B. Decrease in Common Stock and increase in Retained Earnings
C. No effect on Common Stock and Retained Earnings
D. Increase in Retained Earnings and decrease in Common Stock
Correct Answer
A
Correct Option:
Increase in Common Stock and decrease in Retained Earnings

About This Question

This is Post Utme Unn 2022 Accounting Question 39. It is one of the objective questions from the 2022 Post Utme Unn Accounting examination.

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