Waec Model Questions Vol1 2019 Financial Accounting Question 46

Practice objective / multiple choice question 46 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 46 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

A business purchases inventory on credit for ₦120,000. State the effect of this transaction on the accounting equation (Assets, Liabilities, Equity).

Answer Options

A. Assets increase by ₦120,000; Liabilities increase by ₦60,000; Equity increase by ₦60,000
Correct Answer B. Assets increase by ₦120,000; Liabilities increase by ₦120,000; Equity unchanged
C. Assets increase by ₦120,000; Liabilities unchanged; Equity unchanged
D. Assets increase by ₦120,000; Liabilities increase by ₦120,000; Equity decreases by ₦120,000
Correct Answer
B
Correct Option:
Assets increase by ₦120,000; Liabilities increase by ₦120,000; Equity unchanged

About This Question

This is Waec Model Questions Vol1 2019 Financial Accounting Question 46. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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