Waec Model Questions Vol1 2023 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A company sold goods for cash ₦30,000. The cost of the goods sold was ₦18,000. Determine the effect of this transaction on each component of the accounting equation (Assets, Liabilities, Owner's Equity).

Answer Options

A. Assets increase by ₦30,000; Liabilities unchanged; Owner's Equity increases by ₦12,000
B. Assets increase by ₦12,000; Liabilities unchanged; Owner's Equity decreases by ₦12,000
C. Assets increase by ₦12,000; Liabilities increase by ₦2,000; Owner's Equity increases by ₦10,000
Correct Answer D. Assets increase by ₦12,000; Liabilities unchanged; Owner's Equity increases by ₦12,000
Correct Answer
D
Correct Option:
Assets increase by ₦12,000; Liabilities unchanged; Owner's Equity increases by ₦12,000

About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 2. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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