GCE Accounting 2025 Objective — Question 26
Question 26 of 60 from the General Certificate of Education (GCE) Accounting 2025 Objective paper, with the correct answer and a full explanation.
Advertisement
Purchase price of machinery N120,000; Freight and installation N20,000; Annual maintenance N2,000; Estimated scrap value N4,000; used for 5 years. What is the total acquisition cost of machinery?
- A. N152,000Correct
- B. N144,000
- C. N140,000
Explanation
Total acquisition cost = Purchase price + Freight and installation + related costs = approximately N152,000 per the source key (annual maintenance is a revenue expense, not part of acquisition cost).
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.