Neco Model Questions Vol1 2017 Financial Accounting Question 12

Practice objective / multiple choice question 12 from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 12 NECO_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

A company receives a cash loan of \(200,000\) from a bank. State the effect of this transaction on the accounting equation (Assets = Liabilities + Equity).

Answer Options

A. Assets increase, Liabilities unchanged, Equity unchanged
B. Assets unchanged, Liabilities increase, Equity unchanged
C. Assets increase, Liabilities increase, Equity increase
Correct Answer D. Assets increase, Liabilities increase, Equity unchanged
Correct Answer
D
Correct Option:
Assets increase, Liabilities increase, Equity unchanged

About This Question

This is Neco Model Questions Vol1 2017 Financial Accounting Question 12. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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