Post Utme Unn 2024 Accounting Question 26

Practice objective / multiple choice question 26 from the 2024 Post Utme Unn Accounting examination.

Post Utme Unn 2024 Accounting Objective / Multiple Choice
Question 26 POST_UTME_UNN • 2024 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. The following journal entry is made: Debit: Raw Materials ₦ 10,000, Credit: Purchases ₦ 10,000. What is the effect of this transaction on the company's ledger accounts?

Answer Options

A. The Raw Materials account will be debited and the Purchases account will be credited.
B. The Raw Materials account will be credited and the Purchases account will be debited.
Correct Answer C. The Raw Materials account will be debited and the Purchases account will be credited, resulting in an increase in the company's assets.
D. The Raw Materials account will be credited and the Purchases account will be debited, resulting in a decrease in the company's assets.
Correct Answer
C
Correct Option:
The Raw Materials account will be debited and the Purchases account will be credited, resulting in an increase in the company's assets.

About This Question

This is Post Utme Unn 2024 Accounting Question 26. It is one of the objective questions from the 2024 Post Utme Unn Accounting examination.

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