Waec Model Questions Vol1 2020 Financial Accounting Question 15

Practice objective / multiple choice question 15 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 15 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

A government department had an original annual budget of ₦500,000,000. During the year the following events occurred: 1. An unused appropriation of ₦30,000,000 was transferred to a special project. 2. An unexpected expense of ₦45,000,000 was incurred and was financed by borrowing the same amount. 3. Revenue actually collected was ₦120,000,000, which is 10 % higher than the estimated revenue of ₦109,090,909. At the end of the year, what is the amount of the surplus or deficit reported by the department? State the amount and whether it is a surplus or a deficit. (Round to the nearest million naira.)

Answer Options

A. Surplus of ₦380,000,000
B. Deficit of ₦350,000,000
C. Deficit of ₦420,000,000
Correct Answer D. Deficit of ₦380,000,000
Correct Answer
D
Correct Option:
Deficit of ₦380,000,000

About This Question

This is Waec Model Questions Vol1 2020 Financial Accounting Question 15. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support