JAMB Accounting 2015 Objective — Question 6

Question 6 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

When a transaction causes an asset account to increase, there is

A. a decrease of equal amount in the owner's equity account
B. an increase in a liability accountCorrect
C. an increase of equal amount in another asset account
D. a decrease of equal amount in a liability account

Explanation

To keep the accounting equation balanced, an increase in an asset account can be caused by an increase in a liability account, introduction of additional capital, or a decrease in another asset.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2015 Objective More Accounting past papers