Neco Model Questions Vol1 2018 Financial Accounting Question 32

Practice objective / multiple choice question 32 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 32 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

The Ministry of Health authorized a salary budget of \(\text{₦}2,000,000\) for the fiscal year. At year‑end, salaries paid amount to \(\text{₦}1,600,000\), salaries accrued but not yet paid amount to \(\text{₦}250,000\), and the unspent portion of the budget is \(\text{₦}150,000\). Under the modified accrual basis used in public‑sector accounting, determine (a) the salary expense to be reported, (b) the liability to be shown, and (c) the remaining budgetary balance.

Answer Options

A. Salary expense: ₦1,850,000; Liability (accrued salaries): ₦250,000; Remaining budgetary balance: ₦100,000
Correct Answer B. Salary expense: ₦1,850,000; Liability (accrued salaries): ₦250,000; Remaining budgetary balance: ₦150,000
C. Salary expense: ₦1,850,000; Liability (accrued salaries): ₦200,000; Remaining budgetary balance: ₦150,000
D. Salary expense: ₦1,800,000; Liability (accrued salaries): ₦250,000; Remaining budgetary balance: ₦150,000
Correct Answer
B
Correct Option:
Salary expense: ₦1,850,000; Liability (accrued salaries): ₦250,000; Remaining budgetary balance: ₦150,000

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 32. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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