Neco Model Questions Vol1 2024 Financial Accounting Question 1

Practice objective / multiple choice question 1 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 1 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A company bought equipment on credit for \(500,000\) and paid cash \(50,000\) for its installation. Record the appropriate journal entries using the double‑entry system.

Answer Options

Correct Answer A. Debit Equipment 500,000; Credit Accounts Payable 500,000. Debit Installation Expense 50,000; Credit Cash 50,000.
B. Debit Equipment 500,000; Credit Accounts Payable 500,000. Debit Installation Expense 60,000; Credit Cash 60,000.
C. Debit Equipment 550,000; Credit Accounts Payable 550,000. Debit Installation Expense 50,000; Credit Cash 50,000.
D. Debit Equipment 500,000; Credit Cash 500,000. Debit Installation Expense 50,000; Credit Accounts Payable 50,000.
Correct Answer
A
Correct Option:
Debit Equipment 500,000; Credit Accounts Payable 500,000. Debit Installation Expense 50,000; Credit Cash 50,000.

About This Question

This is Neco Model Questions Vol1 2024 Financial Accounting Question 1. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

View More Neco Model Questions Vol1 2024 Financial Accounting Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support