Gce Model Questions Vol1 2020 Financial Accounting Question 38

Practice objective / multiple choice question 38 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 38 GCE_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

A business pays \(£25,000\) cash to acquire a delivery van. State the effect of this transaction on the accounting equation \(Assets = Liabilities + Equity\).

Answer Options

A. Assets unchanged, Liabilities increased, Equity unchanged
Correct Answer B. Assets unchanged, Liabilities unchanged, Equity unchanged
C. Assets unchanged, Liabilities unchanged, Equity decreased
D. Assets decreased, Liabilities unchanged, Equity unchanged
Correct Answer
B
Correct Option:
Assets unchanged, Liabilities unchanged, Equity unchanged

About This Question

This is Gce Model Questions Vol1 2020 Financial Accounting Question 38. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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