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WAEC Accounting 2024 Objective — Question 10

Question 10 of 50 from the West African Examinations Council (WAEC) Accounting 2024 Objective paper, with the correct answer and a full explanation.

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A sole trader received the sum of #4,860 cash from a debtor. The effect of this transaction in the balance sheet is a

  • A. decrease in stock and increase in debtor
  • B. decrease in asset and increase in liability
  • C. increase in cash and decrease in debtorCorrect
  • D. increase in cash and decrease in capital

Explanation

Cash received from a debtor increases the cash balance while reducing the amount owed by that debtor.

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