Post Utme Futo 2018 Accounting Question 26

Practice objective / multiple choice question 26 from the 2018 Post Utme Futo Accounting examination.

Post Utme Futo 2018 Accounting Objective / Multiple Choice
Question 26 POST_UTME_FUTO • 2018 • ACCOUNTING • objective

A company maintains a cash book and a general ledger. The cash book shows a balance of ₦12,500, while the general ledger shows a balance of ₦10,000. The bank statement shows a balance of ₦15,000. What is the correct procedure to reconcile the cash book and bank statement?

Answer Options

Correct Answer A. Prepare a bank reconciliation statement to identify the differences between the cash book and bank statement balances.
B. Adjust the cash book balance to match the bank statement balance.
C. Reconcile the general ledger balance with the bank statement balance.
D. Prepare a cash flow statement to explain the differences between the cash book and bank statement balances.
Correct Answer
A
Correct Option:
Prepare a bank reconciliation statement to identify the differences between the cash book and bank statement balances.

About This Question

This is Post Utme Futo 2018 Accounting Question 26. It is one of the objective questions from the 2018 Post Utme Futo Accounting examination.

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