Post Utme Wellspring University 2024 Accounting Question 24

Practice objective / multiple choice question 24 from the 2024 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2024 Accounting Objective / Multiple Choice
Question 24 POST_UTME_WELLSPRING_UNIVERSITY • 2024 • ACCOUNTING • objective

A company uses the double-entry system to record a transaction. The journal entry is as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?

Answer Options

A. Increases assets and equity
B. Decreases assets and equity
C. Increases assets but decreases equity
Correct Answer D. Decreases assets but increases equity
Correct Answer
D
Correct Option:
Decreases assets but increases equity

About This Question

This is Post Utme Wellspring University 2024 Accounting Question 24. It is one of the objective questions from the 2024 Post Utme Wellspring University Accounting examination.

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