Neco 2018 Financial Accounting Question 41

Practice objective / multiple choice question 41 from the 2018 Neco Financial Accounting examination.

Neco 2018 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 41 NECO • 2018 • FINANCIAL_ACCOUNTING • objective

A business purchased equipment for cash ₦150,000 and incurred a service expense of ₦20,000 on credit. State the effect of these transactions on the accounting equation \(Assets = Liabilities + Owner's Equity\).

Correct Answer A. Assets unchanged; Liabilities increase ₦20,000; Owner's Equity decreases ₦20,000

B. Assets decrease ₦20,000; Liabilities increase ₦20,000; Owner's Equity unchanged

C. Assets unchanged; Liabilities increase ₦20,000; Owner's Equity unchanged

D. Assets increase ₦150,000; Liabilities unchanged; Owner's Equity decreases ₦150,000

Correct Answer

Correct Option:

Assets unchanged; Liabilities increase ₦20,000; Owner's Equity decreases ₦20,000

This is Neco 2018 Financial Accounting Question 41. It is one of the objective questions from the 2018 Neco Financial Accounting examination.

Difficulty level: Easy .

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