Gce Model Questions Vol1 2024 Financial Accounting Question 1

Practice objective / multiple choice question 1 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 1 GCE_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A business purchases equipment on credit for \(\text{₦}150{,}000\). State how this transaction affects the accounting equation.

Answer Options

A. Assets increase by \(\text{₦}150{,}000\); Liabilities increase by \(\text{₦}150{,}000\); Equity increase by \(\text{₦}150{,}000\).
B. Assets increase by \(\text{₦}150{,}000\); Liabilities increase by \(\text{₦}75{,}000\); Equity increase by \(\text{₦}75{,}000\).
Correct Answer C. Assets increase by \(\text{₦}150{,}000\); Liabilities increase by \(\text{₦}150{,}000\); Equity unchanged.
D. Assets increase by \(\text{₦}150{,}000\); Liabilities unchanged; Equity decrease by \(\text{₦}150{,}000\).
Correct Answer
C
Correct Option:
Assets increase by \(\text{₦}150{,}000\); Liabilities increase by \(\text{₦}150{,}000\); Equity unchanged.

About This Question

This is Gce Model Questions Vol1 2024 Financial Accounting Question 1. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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