Post Utme Aaua 2021 Accounting Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Aaua Accounting examination.

Post Utme Aaua 2021 Accounting Objective / Multiple Choice
Question 14 POST_UTME_AAUA • 2021 • ACCOUNTING • objective

A company has the following financial statements: Balance Sheet and Income Statement. The Balance Sheet shows a total asset of ₦500,000 and a total liability of ₦300,000. The Income Statement shows a net income of ₦50,000. What is the correct explanation for the difference between the total asset and total liability?

Answer Options

A. The company has a cash surplus of ₦200,000.
Correct Answer B. The company has a cash deficit of ₦200,000.
C. The company has a bank overdraft of ₦200,000.
D. The company has a cash balance of ₦500,000 and a bank balance of ₦300,000.
Correct Answer
B
Correct Option:
The company has a cash deficit of ₦200,000.

About This Question

This is Post Utme Aaua 2021 Accounting Question 14. It is one of the objective questions from the 2021 Post Utme Aaua Accounting examination.

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