Neco Model Questions Vol1 2023 Financial Accounting Question 37

Practice objective / multiple choice question 37 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 37 NECO_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A business purchases inventory on credit for \(\text{₦}120,000\). How does this transaction affect the accounting equation \(\text{Assets} = \text{Liabilities} + \text{Owner's Equity}\)?

Answer Options

A. Assets unchanged; Liabilities +120,000; Equity unchanged
B. Assets +120,000; Liabilities unchanged; Equity unchanged
Correct Answer C. Assets +120,000; Liabilities +120,000; Equity unchanged
D. Assets +120,000; Liabilities +120,000; Equity +120,000
Correct Answer
C
Correct Option:
Assets +120,000; Liabilities +120,000; Equity unchanged

About This Question

This is Neco Model Questions Vol1 2023 Financial Accounting Question 37. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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