Post Utme Esut 2020 Accounting Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Esut Accounting examination.

Post Utme Esut 2020 Accounting Objective / Multiple Choice
Question 36 POST_UTME_ESUT • 2020 • ACCOUNTING • objective

A government agency's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank error. The agency's accountant wants to reconcile the two balances. What is the correct procedure to follow?

Answer Options

Correct Answer A. Prepare a bank reconciliation statement to identify the differences.
B. Contact the bank to correct the error.
C. Adjust the cash book balance to match the bank statement balance.
D. Ignore the difference and continue with the cash book balance.
Correct Answer
A
Correct Option:
Prepare a bank reconciliation statement to identify the differences.

About This Question

This is Post Utme Esut 2020 Accounting Question 36. It is one of the objective questions from the 2020 Post Utme Esut Accounting examination.

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