Waec Model Questions Vol1 2022 Financial Accounting Question 36

Practice objective / multiple choice question 36 from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 36 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

A business purchased equipment costing ₦150,000 cash. State the effect of this transaction on the accounting equation (Assets = Liabilities + Owner's Equity).

Answer Options

A. Total assets unchanged; assets are re‑allocated (Equipment ↑ ₦150,000, Cash ↓ ₦150,000). Liabilities increase by ₦150,000.
Correct Answer B. No change in total assets; assets are re‑allocated (Equipment ↑ ₦150,000, Cash ↓ ₦150,000). Liabilities and Owner's Equity remain unchanged.
C. Total assets decrease by ₦150,000; Cash ↓ ₦150,000, Equipment unchanged. Liabilities and Owner's Equity remain unchanged.
D. Total assets increase by ₦150,000; assets are re‑allocated (Equipment ↑ ₦150,000, Cash unchanged). Liabilities and Owner's Equity remain unchanged.
Correct Answer
B
Correct Option:
No change in total assets; assets are re‑allocated (Equipment ↑ ₦150,000, Cash ↓ ₦150,000). Liabilities and Owner's Equity remain unchanged.

About This Question

This is Waec Model Questions Vol1 2022 Financial Accounting Question 36. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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