Neco Model Questions Vol1 2022 Financial Accounting Question 9

Practice objective / multiple choice question 9 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 9 NECO_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

On 1 March, a company purchases equipment for ₦150,000 cash. Show how this transaction affects the accounting equation (Assets = Liabilities + Equity).

Answer Options

A. Assets: Equipment ↑ ₦150,000, Cash ↓ ₦150,000 (net no change); Liabilities: no change; Equity: ↑ ₦150,000
Correct Answer B. Assets: Equipment ↑ ₦150,000, Cash ↓ ₦150,000 (net no change); Liabilities: no change; Equity: no change
C. Assets: Equipment ↑ ₦150,000, Cash ↑ ₦150,000 (net increase ₦300,000); Liabilities: no change; Equity: no change
D. Assets: Equipment ↑ ₦150,000, Cash ↓ ₦150,000 (net no change); Liabilities: ↑ ₦150,000; Equity: no change
Correct Answer
B
Correct Option:
Assets: Equipment ↑ ₦150,000, Cash ↓ ₦150,000 (net no change); Liabilities: no change; Equity: no change

About This Question

This is Neco Model Questions Vol1 2022 Financial Accounting Question 9. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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