Post Utme Veritas University 2020 Accounting Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2020 Accounting Objective / Multiple Choice
Question 16 POST_UTME_VERITAS_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The following journal entry is made: Debit Cash 1,000, Credit Accounts Payable 1,000. What is the effect of this transaction on the company's balance sheet?

Answer Options

A. The company's cash balance will decrease by 1,000.
Correct Answer B. The company's accounts payable balance will increase by 1,000.
C. The company's cash balance will increase by 1,000.
D. The company's accounts payable balance will decrease by 1,000.
Correct Answer
B
Correct Option:
The company's accounts payable balance will increase by 1,000.

About This Question

This is Post Utme Veritas University 2020 Accounting Question 16. It is one of the objective questions from the 2020 Post Utme Veritas University Accounting examination.

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