Neco Model Questions Vol1 2021 Financial Accounting Question 23

Practice objective / multiple choice question 23 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 23 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A company purchases office equipment for \(250,000\) naira cash. Record the journal entry using the double‑entry system and state the effect of this transaction on the accounting equation.

Answer Options

A. Debit Office Equipment 250,000; Credit Cash 250,000. Assets unchanged, liabilities unchanged, equity decrease.
Correct Answer B. Debit Office Equipment 250,000; Credit Cash 250,000. Assets unchanged, liabilities unchanged, equity unchanged.
C. Debit Office Equipment 250,000; Credit Cash 250,000. Assets unchanged, liabilities increase, equity unchanged.
D. Debit Office Equipment 250,000; Credit Cash 250,000. Assets increase, liabilities unchanged, equity unchanged.
Correct Answer
B
Correct Option:
Debit Office Equipment 250,000; Credit Cash 250,000. Assets unchanged, liabilities unchanged, equity unchanged.

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 23. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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