Post Utme Afe Babalola University 2021 Accounting Question 9

Practice objective / multiple choice question 9 from the 2021 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2021 Accounting Objective / Multiple Choice
Question 9 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's bank reconciliation statement shows the following discrepancies: Bank Statement Balance 10,000, Cash Balance 12,000, Outstanding Checks 2,000, Deposits in Transit 1,000. What is the correct procedure to reconcile the bank statement and cash balance?

Answer Options

Correct Answer A. Add the outstanding checks and deposits in transit to the bank statement balance
B. Subtract the outstanding checks and deposits in transit from the bank statement balance
C. Add the outstanding checks and deposits in transit to the cash balance
D. Subtract the outstanding checks and deposits in transit from the cash balance
Correct Answer
A
Correct Option:
Add the outstanding checks and deposits in transit to the bank statement balance

About This Question

This is Post Utme Afe Babalola University 2021 Accounting Question 9. It is one of the objective questions from the 2021 Post Utme Afe Babalola University Accounting examination.

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