Post Utme Greenfield University 2020 Accounting Question 23

Practice objective / multiple choice question 23 from the 2020 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2020 Accounting Objective / Multiple Choice
Question 23 POST_UTME_GREENFIELD_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses a cash book to record its cash transactions. The cash book shows a debit balance of ₦20,000 in the account 'Cash'. However, the company's bank statement shows a credit balance of ₦30,000. What is the most likely explanation for this discrepancy?

Answer Options

A. The company has incorrectly recorded the cash received as a debit.
Correct Answer B. The company has incorrectly recorded the cash paid as a credit.
C. The company has not received any cash from its customers.
D. The company has incorrectly recorded the bank charges as a debit.
Correct Answer
B
Correct Option:
The company has incorrectly recorded the cash paid as a credit.

About This Question

This is Post Utme Greenfield University 2020 Accounting Question 23. It is one of the objective questions from the 2020 Post Utme Greenfield University Accounting examination.

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