Question on: WAEC Accounting - 2014
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 stock
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Correct Option: D
Since the shop is involved in the sales of electronics and fans are electronics, the purchase is therefore considered stock which has been purchased by Akpan electronic enterprise for resale.
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