Post Utme Covenant University 2018 Accounting Question 29

Practice objective / multiple choice question 29 from the 2018 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2018 Accounting Objective / Multiple Choice
Question 29 POST_UTME_COVENANT_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's cash book shows the following transactions: 'Dr. Cash A/c 5,000, Cr. Bank A/c 5,000' and 'Dr. Bank A/c 3,000, Cr. Cash A/c 3,000'. What is the net effect of these transactions on the company's cash and bank balances?

Answer Options

A. The company's cash balance increases by 2,000 and its bank balance decreases by 2,000.
B. The company's cash balance decreases by 2,000 and its bank balance increases by 2,000.
Correct Answer C. The company's cash balance remains the same and its bank balance remains the same.
D. The company's cash balance increases by 2,000 and its bank balance increases by 2,000.
Correct Answer
C
Correct Option:
The company's cash balance remains the same and its bank balance remains the same.

About This Question

This is Post Utme Covenant University 2018 Accounting Question 29. It is one of the objective questions from the 2018 Post Utme Covenant University Accounting examination.

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