Post Utme Abu 2021 Accounting Question 39

Practice objective / multiple choice question 39 from the 2021 Post Utme Abu Accounting examination.

Post Utme Abu 2021 Accounting Objective / Multiple Choice
Question 39 POST_UTME_ABU • 2021 • ACCOUNTING • objective

A company uses the double entry system and records all its transactions in a ledger. The ledger shows a balance of ₦300,000. However, the company's bank statement shows a balance of ₦350,000. 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 39. It is one of the objective questions from the 2021 Post Utme Abu Accounting examination.

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