Post Utme Delsu 2017 Accounting Question 18

Practice objective / multiple choice question 18 from the 2017 Post Utme Delsu Accounting examination.

Post Utme Delsu 2017 Accounting Objective / Multiple Choice
Question 18 POST_UTME_DELSU • 2017 • ACCOUNTING • objective

A company's cash book shows a balance of ₦20,000. However, the bank statement shows a balance of ₦25,000. What is the correct treatment of the difference?

Answer Options

A. Treat it as a discrepancy and show it as a current liability in the balance sheet.
B. Treat it as a discrepancy and show it as a current asset in the balance sheet.
Correct Answer C. Treat it as a bank overdraft and show it as a current liability in the balance sheet.
D. Treat it as a cash in transit and show it as a current asset in the balance sheet.
Correct Answer
C
Correct Option:
Treat it as a bank overdraft and show it as a current liability in the balance sheet.

About This Question

This is Post Utme Delsu 2017 Accounting Question 18. It is one of the objective questions from the 2017 Post Utme Delsu Accounting examination.

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