Neco 2025 Financial Accounting Question 7

Practice objective / multiple choice question 7 from the 2025 Neco Financial Accounting examination.

Neco 2025 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 7 NECO • 2025 • FINANCIAL_ACCOUNTING • objective

On 1\(\) March, the business purchased equipment for \(150,000\) cash and incurred repair expenses of \(5,000\) on credit. Record the appropriate journal entries.

Correct Answer A. Debit Equipment \(150,000\); Credit Cash \(150,000\). Debit Repairs Expense \(5,000\); Credit Accounts Payable \(5,000\).

B. Debit Equipment \(150,000\); Credit Accounts Payable \(150,000\). Debit Repairs Expense \(5,000\); Credit Cash \(5,000\).

C. Debit Equipment \(155,000\); Credit Cash \(155,000\). Debit Repairs Expense \(5,000\); Credit Accounts Payable \(5,000\).

D. Debit Equipment \(150,000\); Credit Cash \(150,000\). Debit Repairs Expense \(5,000\); Credit Cash \(5,000\).

Correct Answer

Correct Option:

Debit Equipment \(150,000\); Credit Cash \(150,000\). Debit Repairs Expense \(5,000\); Credit Accounts Payable \(5,000\).

This is Neco 2025 Financial Accounting Question 7. It is one of the objective questions from the 2025 Neco Financial Accounting examination.

Difficulty level: Easy .

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