Neco 2017 Financial Accounting Question 40

Practice objective / multiple choice question 40 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 40 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

Delta Ltd. purchased inventory costing \(25,000\) on credit. Freight‑in of \(2,000\) was paid in cash at the time of purchase. Record the journal entries for this transaction.

A. Debit Inventory \u20A6 25,000; Credit Accounts Payable \u20A6 25,000; Credit Cash \u20A6 2,000

B. Debit Inventory \u20A6 27,000; Credit Accounts Payable \u20A6 23,000; Credit Cash \u20A6 4,000

C. Debit Inventory \u20A6 27,000; Credit Accounts Payable \u20A6 27,000; Credit Cash \u20A6 0

Correct Answer D. Debit Inventory \u20A6 27,000; Credit Accounts Payable \u20A6 25,000; Credit Cash \u20A6 2,000

Correct Answer

Correct Option:

Debit Inventory \u20A6 27,000; Credit Accounts Payable \u20A6 25,000; Credit Cash \u20A6 2,000

This is Neco 2017 Financial Accounting Question 40. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Easy .

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