Post Utme Veritas University 2020 Accounting Question 19

Practice objective / multiple choice question 19 from the 2020 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2020 Accounting Objective / Multiple Choice
Question 19 POST_UTME_VERITAS_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the single-entry system to record its transactions. The following entry is made: Debit Sales 1,000, Credit Cost of Goods Sold 500. What is the effect of this transaction on the company's income statement?

Answer Options

Correct Answer A. The company's net income will increase by 500.
B. The company's net income will decrease by 500.
C. The company's cost of goods sold will increase by 500.
D. The company's sales will increase by 500.
Correct Answer
A
Correct Option:
The company's net income will increase by 500.

About This Question

This is Post Utme Veritas University 2020 Accounting Question 19. It is one of the objective questions from the 2020 Post Utme Veritas University Accounting examination.

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