Neco Model Questions Vol1 2022 Financial Accounting Question 31

Practice objective / multiple choice question 31 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 31 NECO_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

State the effect of purchasing equipment for cash on the accounting equation. Indicate the change (increase, decrease or no change) for Assets, Liabilities and Owner's Equity.

Answer Options

Correct Answer A. Assets: no change; Liabilities: no change; Owner's Equity: no change
B. Assets: decrease; Liabilities: increase; Owner's Equity: no change
C. Assets: no change; Liabilities: increase; Owner's Equity: decrease
D. Assets: increase; Liabilities: no change; Owner's Equity: decrease
Correct Answer
A
Correct Option:
Assets: no change; Liabilities: no change; Owner's Equity: no change

About This Question

This is Neco Model Questions Vol1 2022 Financial Accounting Question 31. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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