Neco 2022 Financial Accounting Question 29

Practice objective / multiple choice question 29 from the 2022 Neco Financial Accounting examination.

Neco 2022 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 29 NECO • 2022 • FINANCIAL_ACCOUNTING • objective

The Ministry of Health has the following data for the fiscal year: - Original appropriation: ₦200,000,000 - Supplementary appropriation approved mid‑year: ₦50,000,000 - Transfer out to another department: ₦30,000,000 - Receipts from external grants (restricted): ₦15,000,000 - Expenditure on capital projects: ₦120,000,000 - Expenditure on current operations: ₦100,000,000 - The year‑end financial statement reports an unspent balance of ₦20,000,000 to be carried forward. According to public‑sector accounting standards, determine the correct closing fund balance and state whether the reported unspent balance of \(₦20,000,000\) is accurate.

Answer Options

A. Closing fund balance = ₦25,000,000; the reported unspent balance of \(₦20,000,000\) is inaccurate (understated by ₦5,000,000).
B. Closing fund balance = ₦15,000,000; the reported unspent balance of \(₦20,000,000\) is accurate.
Correct Answer C. Closing fund balance = ₦15,000,000; the reported unspent balance of ₦20,000,000 is inaccurate (overstated by ₦5,000,000).
D. Closing fund balance = ₦10,000,000; the reported unspent balance of \(₦20,000,000\) is inaccurate (overstated by ₦10,000,000).
Correct Answer
C
Correct Option:
Closing fund balance = ₦15,000,000; the reported unspent balance of ₦20,000,000 is inaccurate (overstated by ₦5,000,000).

About This Question

This is Neco 2022 Financial Accounting Question 29. It is one of the objective questions from the 2022 Neco Financial Accounting examination.

Difficulty level: Hard .

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