Neco Model Questions Vol1 2023 Financial Accounting Question 14

Practice objective / multiple choice question 14 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 14 NECO_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A debit of ₦15,000 is posted to the Salaries Expense account. State the effect of this transaction on the accounting equation \(\text{Assets} = \text{Liabilities} + \text{Owner's Equity}\).

Answer Options

Correct Answer A. Owner's Equity decreases by ₦15,000; Assets and Liabilities are unchanged.
B. Owner's Equity decreases by ₦15,000; Assets increase by ₦15,000; Liabilities unchanged.
C. Assets decrease by ₦15,000; Liabilities unchanged; Owner's Equity unchanged.
D. Liabilities increase by ₦15,000; Owner's Equity decreases by ₦15,000; Assets unchanged.
Correct Answer
A
Correct Option:
Owner's Equity decreases by ₦15,000; Assets and Liabilities are unchanged.

About This Question

This is Neco Model Questions Vol1 2023 Financial Accounting Question 14. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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