Neco Model Questions Vol1 2018 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 22 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

A government department received an original appropriation of \(2,000,000\). During the year it recorded the following expenditures: Salaries \(800,000\), Supplies \(250,000\) and Capital outlay \(600,000\). An audit later shows that \(50,000\) of the supplies expense was mistakenly charged to Capital outlay and should be re‑classified to Supplies. At year‑end the department intends to transfer any unspent balance of \(100,000\) to the next year's appropriation. Determine (a) the adjusted unspent balance of the appropriation at year‑end, and (b) the amount to be transferred.

Answer Options

Correct Answer A. Adjusted unspent balance 250,000; Transfer amount 100,000
B. Adjusted unspent balance 250,000; Transfer amount 150,000
C. Adjusted unspent balance 300,000; Transfer amount 100,000
D. Adjusted unspent balance 350,000; Transfer amount 100,000
Correct Answer
A
Correct Option:
Adjusted unspent balance 250,000; Transfer amount 100,000

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 22. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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