Neco 2024 Financial Accounting Question 26

Practice objective / multiple choice question 26 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 26 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

A business purchased equipment for cash ₦150,000. State how this transaction affects the accounting equation \(Assets = Liabilities + Owner\'s\ Equity\) in terms of the categories of accounts involved.

A. Assets: Equipment +₦150,000, Cash -₦150,000 (net zero change); Liabilities: no change; Owner's Equity: increase ₦150,000.

B. Assets: Equipment +₦150,000, Cash -₦150,000 (net zero change); Liabilities: no change; Owner's Equity: decrease ₦150,000.

Correct Answer C. Assets: Equipment +₦150,000, Cash -₦150,000 (net zero change); Liabilities: no change; Owner's Equity: no change.

D. Assets: Equipment +₦150,000, Cash -₦150,000 (net zero change); Liabilities: increase ₦150,000; Owner's Equity: no change.

Correct Answer

Correct Option:

Assets: Equipment +₦150,000, Cash -₦150,000 (net zero change); Liabilities: no change; Owner's Equity: no change.

This is Neco 2024 Financial Accounting Question 26. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Easy .

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