Neco 2024 Financial Accounting Question 33

Practice objective / multiple choice question 33 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 33 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

A local government council budgets its Education Fund for the year as follows: cash receipts \(120,000\), cash payments \(95,000\) (budgeted surplus \(25,000\)). Actual cash receipts were \(110,000\) and actual cash payments \(102,000\). During the year the council transferred \(8,000\) from the Education Fund to the General Fund and received a state grant of \(5,000\) into the Education Fund. Assuming the fund started with a zero balance, determine the ending cash balance in the Education Fund and state whether the actual result is a surplus or deficit relative to the budgeted surplus.

Answer Options

A. Ending balance = 13,000; deficit of 12,000 relative to budgeted surplus
B. Ending balance = 5,000; surplus of 5,000 relative to budgeted surplus
C. Ending balance = -3,000; deficit of 28,000 relative to budgeted surplus
Correct Answer D. Ending balance = 5,000; deficit of 20,000 relative to budgeted surplus
Correct Answer
D
Correct Option:
Ending balance = 5,000; deficit of 20,000 relative to budgeted surplus

About This Question

This is Neco 2024 Financial Accounting Question 33. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Hard .

View More Neco 2024 Financial Accounting Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support