Neco 2017 Financial Accounting Question 24

Practice objective / multiple choice question 24 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 24 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

An asset was purchased for \(\text{₦}150,000\) with an estimated residual value of \(\text{₦}15,000\) and a useful life of 5\,years. Compute the book value after 3\,years using the double‑declining‑balance method (rate = 2/useful life) and state how much higher this book value is compared with the straight‑line method after the same period.

Answer Options

A. \text{₦}32,400; \text{₦}36,600 higher than straight‑line
B. \text{₦}34,800; \text{₦}34,200 lower than straight‑line
C. \text{₦}30,000; \text{₦}39,000 lower than straight‑line
Correct Answer D. \text{₦}32,400; \text{₦}36,600 lower than straight‑line
Correct Answer
D
Correct Option:
\text{₦}32,400; \text{₦}36,600 lower than straight‑line

About This Question

This is Neco 2017 Financial Accounting Question 24. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Medium .

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