Waec Model Questions Vol1 2021 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A government department follows modified accrual accounting. Its budget for the year estimates cash receipts of ₦200,000,000 and cash payments of ₦190,000,000. During the year the department actually received cash of ₦180,000,000, made cash payments of ₦170,000,000, accrued revenue of ₦15,000,000 and accrued expenses of ₦20,000,000. (Assume the opening cash balance was zero.) Calculate (a) the department's net financial position at year‑end, and (b) the budgetary surplus or deficit. Briefly explain why the two figures differ.

Answer Options

Correct Answer A. Net financial position = ₦5,000,000 surplus; Budgetary surplus = ₦10,000,000
B. Net financial position = ₦5,000,000 surplus; Budgetary surplus = ₦8,000,000
C. Net financial position = ₦10,000,000 surplus; Budgetary surplus = ₦10,000,000
D. Net financial position = ₦5,000,000 deficit; Budgetary surplus = ₦10,000,000
Correct Answer
A
Correct Option:
Net financial position = ₦5,000,000 surplus; Budgetary surplus = ₦10,000,000

About This Question

This is Waec Model Questions Vol1 2021 Financial Accounting Question 2. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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