Post Utme Wellspring University 2025 Accounting Question 20

Practice objective / multiple choice question 20 from the 2025 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2025 Accounting Objective / Multiple Choice
Question 20 POST_UTME_WELLSPRING_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's journal entry for the purchase of an asset on credit is as follows: Debit asset ₦120,000 and credit accounts payable ₦120,000. What is the accounting equation implication of this transaction?

Answer Options

A. Increase in assets and decrease in equity
B. Increase in equity and decrease in assets
Correct Answer C. Increase in assets and increase in equity
D. Decrease in assets and decrease in equity
Correct Answer
C
Correct Option:
Increase in assets and increase in equity

About This Question

This is Post Utme Wellspring University 2025 Accounting Question 20. It is one of the objective questions from the 2025 Post Utme Wellspring University Accounting examination.

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