Post Utme Abu 2020 Accounting Question 30

Practice objective / multiple choice question 30 from the 2020 Post Utme Abu Accounting examination.

Post Utme Abu 2020 Accounting Objective / Multiple Choice
Question 30 POST_UTME_ABU • 2020 • ACCOUNTING • objective

A company's profit and loss account for the year ended 31st December 2020, shows a profit of ₦500,000. The company's balance sheet also shows a profit of ₦600,000. However, the company's cash flow statement 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 cash flow statement is incorrect.
Correct Answer D. The profit and loss account, balance sheet, and cash flow statement are all incorrect.
Correct Answer
D
Correct Option:
The profit and loss account, balance sheet, and cash flow statement are all incorrect.

About This Question

This is Post Utme Abu 2020 Accounting Question 30. It is one of the objective questions from the 2020 Post Utme Abu Accounting examination.

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