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WAEC Financial Accounting 2020 Question 19

Question 19

Accounting Equation

Eze introduces his private car into his business. The aspect of accounting equation of the business that would be affected are

  1. A.Assets and Capital.
  2. B.Capital and Profit.
  3. C.Liabilities and Assets.
  4. D.Capital and Liabilities.
Show the answer and explanation

Answer: A (Assets and Capital.)

Explanation

The car increases assets and the owner's capital.