JAMB Accounting 2015 Objective — Question 8

Question 8 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

The purchase of two generators by Hassan Electronics Enterprises should be recorded as

A. an acquisition of fixed assetsCorrect
B. an expense in its general office expense account
C. an acquisition of stock
D. a part of capital in the capital account

Explanation

A generator is a long-term asset used in the business, so its purchase should be treated as an acquisition of fixed assets.

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