Neco Model Questions Vol1 2020 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

A business receives a cash loan of \(₦150,000\) from a bank. State the effect of this transaction on the accounting equation (Assets = Liabilities + Equity).

Answer Options

A. Assets increase ₦150,000; Liabilities increase ₦0; Equity unchanged
B. Assets increase ₦150,000; Liabilities increase ₦150,000; Equity decrease ₦150,000
C. Assets increase ₦150,000; Liabilities increase ₦150,000; Equity increase ₦150,000
Correct Answer D. Assets increase ₦150,000; Liabilities increase ₦150,000; Equity unchanged
Correct Answer
D
Correct Option:
Assets increase ₦150,000; Liabilities increase ₦150,000; Equity unchanged

About This Question

This is Neco Model Questions Vol1 2020 Financial Accounting Question 2. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

View More Neco Model Questions Vol1 2020 Financial Accounting Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support