Waec Model Questions Vol1 2018 Financial Accounting Question 5

Practice objective / multiple choice question 5 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 5 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

The Department of Public Works prepared the following budget for the fiscal year 2025 (all figures in ₦): Budgeted: Revenue ₂,₅₀₀,₀₀₀; Salaries ₁,₂₀₀,₀₀₀; Supplies ₃₀₀,₀₀₀; Capital Projects ₈₀₀,₀₀₀; Miscellaneous ₁₅₀,₀₀₀. Actual results: Revenue ₂,₃₅₀,₀₀₀; Salaries ₁,₂₅₀,₀₀₀; Supplies ₂₈₀,₀₀₀; Capital Projects ₈₅₀,₀₀₀; Miscellaneous ₁₄₀,₀₀₀; and an unbudgeted grant of ₦100,000 recorded under "Other Income". Calculate (a) the overall budget variance for the year (state whether it is a surplus or deficit) and (b) whether the Capital Projects expenditure stayed within its appropriation limit.

Answer Options

A. Surplus of ₦70,000; Capital Projects within appropriation
B. Deficit of ₦30,000; Capital Projects exceeded appropriation by ₦50,000
Correct Answer C. Deficit of ₦70,000; Capital Projects exceeded appropriation by ₦50,000
D. Deficit of ₦70,000; Capital Projects within appropriation
Correct Answer
C
Correct Option:
Deficit of ₦70,000; Capital Projects exceeded appropriation by ₦50,000

About This Question

This is Waec Model Questions Vol1 2018 Financial Accounting Question 5. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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