Post Utme Eksu 2019 Accounting Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Eksu Accounting examination.

Post Utme Eksu 2019 Accounting Objective / Multiple Choice
Question 1 POST_UTME_EKSU • 2019 • ACCOUNTING • objective

A company maintains a cash book and a general ledger. The cash book shows a balance of ₦125,000 on December 31, 2018, and the general ledger shows a balance of ₦150,000 on the same date. The company's accountant has prepared a bank reconciliation statement that shows a difference of ₦20,000 between the cash book balance and the bank statement balance. What is the correct explanation for this difference?

Answer Options

A. The difference is due to a bank error.
B. The difference is due to a cash book error.
Correct Answer C. The difference is due to a timing difference between the cash book and the bank statement.
D. The difference is due to a combination of bank and cash book errors.
Correct Answer
C
Correct Option:
The difference is due to a timing difference between the cash book and the bank statement.

About This Question

This is Post Utme Eksu 2019 Accounting Question 1. It is one of the objective questions from the 2019 Post Utme Eksu Accounting examination.

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