Waec Model Questions Vol1 2021 Financial Accounting Question 3

Practice objective / multiple choice question 3 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

On 15 June, XYZ Ltd purchased a delivery van for cash costing ₦50,000. State the effect of this transaction on the accounting equation (Assets = Liabilities + Equity), indicating the change in each component.

Answer Options

A. Assets: increase ₦50,000 (equipment +₦50,000); Liabilities: no change; Equity: no change
Correct Answer B. Assets: no net change (equipment +₦50,000, cash -₦50,000); Liabilities: no change; Equity: no change
C. Assets: decrease ₦50,000 (cash -₦50,000); Liabilities: no change; Equity: no change
D. Assets: no net change (equipment +₦50,000, cash -₦50,000); Liabilities: increase ₦50,000; Equity: no change
Correct Answer
B
Correct Option:
Assets: no net change (equipment +₦50,000, cash -₦50,000); Liabilities: no change; Equity: no change

About This Question

This is Waec Model Questions Vol1 2021 Financial Accounting Question 3. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

View More Waec Model Questions Vol1 2021 Financial Accounting Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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