WAEC Accounting 2014 Objective — Question 16

Question 16 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as

A. An acquisition of fixed asset
B. An expense in its general office expense account
C. part of capital in the capital account
D. An acquisition of stockCorrect

Explanation

For an electronics-related business, the purchase of fans (items sold in the ordinary course of business) will be regarded as an acquisition of stock.

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