Neco 2025 Financial Accounting Question 49

Practice objective / multiple choice question 49 from the 2025 Neco Financial Accounting examination.

Neco 2025 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 49 NECO • 2025 • FINANCIAL_ACCOUNTING • objective

A purchase of inventory on credit for \(\)₦120,000 was omitted from the books. State the effect of this omission on the accounting equation (Assets, Liabilities, Equity).

Correct Answer A. Assets understated, Liabilities understated, Equity unchanged

B. Assets unchanged, Liabilities understated, Equity understated

C. Assets understated, Liabilities unchanged, Equity overstated

D. Assets overstated, Liabilities understated, Equity unchanged

Correct Answer

Correct Option:

Assets understated, Liabilities understated, Equity unchanged

This is Neco 2025 Financial Accounting Question 49. It is one of the objective questions from the 2025 Neco Financial Accounting examination.

Difficulty level: Easy .

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