Waec Model Questions Vol1 2022 Financial Accounting Question 23

Practice objective / multiple choice question 23 from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 23 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

State the accounting equation and briefly explain how the purchase of equipment costing ₦50,000 on credit affects each component of the equation.

Answer Options

A. Assets increase ₦50,000; Liabilities increase ₦50,000; Owner's equity decrease ₦50,000
B. Assets increase ₦50,000; Liabilities unchanged; Owner's equity increase ₦50,000
Correct Answer C. Assets increase ₦50,000; Liabilities increase ₦50,000; Owner's equity unchanged.
D. Assets decrease ₦50,000; Liabilities increase ₦50,000; Owner's equity unchanged
Correct Answer
C
Correct Option:
Assets increase ₦50,000; Liabilities increase ₦50,000; Owner's equity unchanged.

About This Question

This is Waec Model Questions Vol1 2022 Financial Accounting Question 23. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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