Neco 2020 Financial Accounting Question 16

Practice objective / multiple choice question 16 from the 2020 Neco Financial Accounting examination.

Neco 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 16 NECO • 2020 • FINANCIAL_ACCOUNTING • objective

A business starts the month with cash \(\text{₦}500,000\), equipment \(\text{₦}0\), total assets \(\text{₦}500,000\), liabilities \(\text{₦}200,000\) and owner's equity \(\text{₦}300,000\). During the month it purchases equipment for cash costing \(\text{₦}150,000\). State the new balances of cash, equipment, total assets, liabilities and owner's equity after this transaction.

Answer Options

A. Cash: ₦350,000; Equipment: ₦150,000; Total assets: ₦500,000; Liabilities: ₦350,000; Owner's equity: ₦150,000
B. Cash: ₦500,000; Equipment: ₦150,000; Total assets: ₦650,000; Liabilities: ₦200,000; Owner's equity: ₦300,000
C. Cash: ₦350,000; Equipment: ₦150,000; Total assets: ₦650,000; Liabilities: ₦200,000; Owner's equity: ₦300,000
Correct Answer D. Cash: ₦350,000; Equipment: ₦150,000; Total assets: ₦500,000; Liabilities: ₦200,000; Owner's equity: ₦300,000
Correct Answer
D
Correct Option:
Cash: ₦350,000; Equipment: ₦150,000; Total assets: ₦500,000; Liabilities: ₦200,000; Owner's equity: ₦300,000

About This Question

This is Neco 2020 Financial Accounting Question 16. It is one of the objective questions from the 2020 Neco Financial Accounting examination.

Difficulty level: Easy .

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