Post Utme Abu 2021 Accounting Question 36

Practice objective / multiple choice question 36 from the 2021 Post Utme Abu Accounting examination.

Post Utme Abu 2021 Accounting Objective / Multiple Choice
Question 36 POST_UTME_ABU • 2021 • ACCOUNTING • objective

A company uses the single entry system and records all its transactions in a cash book. The cash book shows a balance of ₦120,000. However, the company's bank statement shows a balance of ₦150,000. What is the reason for the difference?

Answer Options

A. The company has a loan from the bank.
B. The company has a credit balance in its bank account.
Correct Answer C. The company has a debit balance in its bank account.
D. The company has a cash credit balance in its bank account.
Correct Answer
C
Correct Option:
The company has a debit balance in its bank account.

About This Question

This is Post Utme Abu 2021 Accounting Question 36. It is one of the objective questions from the 2021 Post Utme Abu Accounting examination.

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