Post Utme Abu 2020 Accounting Question 27

Practice objective / multiple choice question 27 from the 2020 Post Utme Abu Accounting examination.

Post Utme Abu 2020 Accounting Objective / Multiple Choice
Question 27 POST_UTME_ABU • 2020 • ACCOUNTING • objective

A company's trading account for the year ended 31st December 2020, shows a profit of ₦500,000. The company's profit and loss account also shows a profit of ₦600,000. However, the balance sheet shows a loss of ₦100,000. What is the correct accounting treatment for this discrepancy?

Answer Options

A. The profit and loss account is incorrect.
B. The balance sheet is incorrect.
C. The trading account is incorrect.
Correct Answer D. The profit and loss account and balance sheet are both incorrect.
Correct Answer
D
Correct Option:
The profit and loss account and balance sheet are both incorrect.

About This Question

This is Post Utme Abu 2020 Accounting Question 27. It is one of the objective questions from the 2020 Post Utme Abu Accounting examination.

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