Neco Model Questions Vol1 2021 Financial Accounting Question 15
Practice objective / multiple choice question 15 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
The municipal council prepared the following budgeted and actual figures for the fiscal year (all amounts in ₦): Revenue - budget \(₦1,200,000\); actual \(₦1,150,000\). Expenditure - budget \(₦1,050,000\); actual \(₦1,080,000\). Capital grant - budget \(₦300,000\); actual \(₦320,000\). Capital expenditure - budget \(₦250,000\); actual \(₦260,000\). At year‑end, an unspent portion of the capital grant amounting to \(₦20,000\) must be returned to the granting authority. Assuming a modified accrual basis where cash inflows are the actual revenues and grants received, and cash outflows are the actual expenditures and the grant return, calculate the overall cash surplus (or deficit) for the year.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 15. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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