Neco 2022 Financial Accounting Question 14

Practice objective / multiple choice question 14 from the 2022 Neco Financial Accounting examination.

Neco 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 14 NECO • 2022 • FINANCIAL_ACCOUNTING • objective

State the dual‑aspect (double‑entry) concept of accounting and illustrate it with a transaction involving the purchase of equipment for cash.

Answer Options

Correct Answer A. Every transaction affects at least two accounts, with equal debits and credits. Example: Debit Equipment 150,000 Naira; Credit Cash 150,000 Naira.
B. The dual‑aspect concept states that assets increase with credits and decrease with debits. Example: Debit Equipment 150,000 Naira; Credit Cash 150,000 Naira.
C. Each transaction impacts a single account, with either a debit or a credit. Example: Debit Equipment 150,000 Naira; Credit Cash 150,000 Naira.
D. Every transaction affects at least two accounts, but debits and credits need not be equal. Example: Debit Equipment 150,000 Naira; Credit Cash 140,000 Naira.
Correct Answer
A
Correct Option:
Every transaction affects at least two accounts, with equal debits and credits. Example: Debit Equipment 150,000 Naira; Credit Cash 150,000 Naira.

About This Question

This is Neco 2022 Financial Accounting Question 14. It is one of the objective questions from the 2022 Neco Financial Accounting examination.

Difficulty level: Easy .

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