Neco 2020 Financial Accounting Question 7
Practice objective / multiple choice question 7 from the 2020 Neco Financial Accounting examination.
A government department budgeted cash receipts of \(12,000,000\) naira and cash payments of \(9,500,000\) naira for the year. At year‑end, actual cash receipts were 10 % higher than budgeted and actual cash payments were 8 % lower than budgeted. The department also recorded a non‑cash depreciation expense of \(1,200,000\) naira. Determine the variance in the department's ending cash balance compared with the budgeted ending cash balance, stating whether it is a surplus or deficit.
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About This Question
This is Neco 2020 Financial Accounting Question 7. It is one of the objective questions from the 2020 Neco Financial Accounting examination.
Difficulty level: Hard .
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