Post Utme Greenfield University 2023 Accounting Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2023 Accounting Objective / Multiple Choice
Question 1 POST_UTME_GREENFIELD_UNIVERSITY • 2023 • ACCOUNTING • objective

A company has a cash book and a bank statement. The cash book shows a balance of ₦120,000, while the bank statement shows a balance of ₦150,000. The bank statement also shows a credit of ₦30,000 for a loan received from a customer. The cash book shows a debit of ₦20,000 for a loan paid to a supplier. What is the correct explanation for the difference between the cash book balance and the bank statement balance?

Answer Options

A. The difference is due to the loan received from the customer.
B. The difference is due to the loan paid to the supplier.
C. The difference is due to the cash book balance being overstated.
Correct Answer D. The difference is due to the bank statement balance being understated.
Correct Answer
D
Correct Option:
The difference is due to the bank statement balance being understated.

About This Question

This is Post Utme Greenfield University 2023 Accounting Question 1. It is one of the objective questions from the 2023 Post Utme Greenfield University Accounting examination.

View More Post Utme Greenfield University 2023 Accounting Questions More Post Utme Greenfield University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support