Waec Model Questions Vol1 2019 Financial Accounting Question 26
Practice objective / multiple choice question 26 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
A government department recorded cash receipts of ₦120,000,000 and cash payments of ₦95,000,000 for the year. The cash payments include a capital outlay of ₦12,000,000. In addition, accrued expenses of ₦8,000,000 have been incurred but not yet paid, and depreciation of ₦5,000,000 has been charged. The department is required by law to set aside a statutory reserve equal to 10 % of total cash receipts. After adjusting for the accrued expenses and treating the capital outlay correctly, does the department meet the reserve requirement? If yes, state the excess amount; if no, state the shortfall.
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About This Question
This is Waec Model Questions Vol1 2019 Financial Accounting Question 26. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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