Waec Model Questions Vol1 2017 Financial Accounting Question 25

Practice objective / multiple choice question 25 from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 25 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

A business receives cash of ₦20,000 from a customer for services that will be performed next month. According to the accrual concept, how does this transaction affect the accounting equation (Assets = Liabilities + Equity)? State the changes in assets, liabilities and equity.

Answer Options

A. Assets increase by 20000; Liabilities increase by 20000; Equity increase by 20000
B. Assets increase by 20000; Liabilities unchanged; Equity unchanged
C. Assets unchanged; Liabilities increase by 20000; Equity unchanged
Correct Answer D. Assets increase by 20000; Liabilities increase by 20000; Equity unchanged
Correct Answer
D
Correct Option:
Assets increase by 20000; Liabilities increase by 20000; Equity unchanged

About This Question

This is Waec Model Questions Vol1 2017 Financial Accounting Question 25. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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