JAMB Accounting 2017 Objective — Question 38

Question 38 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

The initial cost of acquiring a fixed asset will be treated as

A. A. Dr: cash account, Cr: asset account
B. B. Dr: asset account, Cr: cash accountCorrect
C. C. Dr: asset account, Cr: purchases account
D. D. Dr: purchases account, Cr: assets account

Explanation

Acquiring a fixed asset is recorded as Dr: asset account and Cr: bank/cash account.

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