Neco Model Questions Vol1 2019 Financial Accounting Question 23
Practice objective / multiple choice question 23 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
A local government prepares an annual operating budget for its Education Department. The original budgeted cash receipts were ₦12,000,000 and cash payments were ₦9,500,000, giving a projected cash surplus. Mid‑year, actual cash receipts turned out to be 80 % of the budgeted amount and cash payments were 110 % of the budgeted amount. Later in the year the department received a special grant of ₦1,200,000 that was not included in the original budget. Assuming the second half of the year follows the original budgeted amounts, determine: (a) the revised cash surplus or deficit at year‑end, and (b) the percentage variance of the revised surplus/deficit from the original projected surplus.
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About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 23. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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