Gce Model Questions Vol1 2023 Financial Accounting Question 47

Practice objective / multiple choice question 47 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 47 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A business purchases equipment costing \(5,000\) and pays cash for it. State the effect of this transaction on the accounting equation.

Answer Options

A. Total assets decrease £5,000; cash decreases £5,000 and equipment increases £5,000.
B. Total assets increase £5,000; cash decreases £5,000 and equipment increases £5,000.
Correct Answer C. No effect on total assets; cash decreases £5,000 and equipment increases £5,000.
D. No effect on total assets; cash increases £5,000 and equipment decreases £5,000.
Correct Answer
C
Correct Option:
No effect on total assets; cash decreases £5,000 and equipment increases £5,000.

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 47. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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