Gce Model Questions Vol1 2023 Financial Accounting Question 10

Practice objective / multiple choice question 10 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A company purchases equipment for \(\text{₦}25{,}000\) and pays the amount in cash. State the effect of this transaction on the accounting equation \(\text{Assets} = \text{Liabilities} + \text{Equity}\).

Answer Options

A. Increase in total assets with no change to liabilities or equity
B. Increase in assets, liabilities, and equity
Correct Answer C. No change to total assets, liabilities or equity
D. Decrease in total assets and increase in equity
Correct Answer
C
Correct Option:
No change to total assets, liabilities or equity

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 10. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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