Post Utme Greenfield University 2023 Accounting Question 3

Practice objective / multiple choice question 3 from the 2023 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2023 Accounting Objective / Multiple Choice
Question 3 POST_UTME_GREENFIELD_UNIVERSITY • 2023 • ACCOUNTING • objective

A company has a control account for its accounts payable. The control account shows a balance of ₦50,000. The company's ledger accounts show the following balances: Accounts Payable ₦60,000, Purchases ₦80,000, and Discounts Allowed ₦10,000. What is the correct explanation for the difference between the control account balance and the ledger account balances?

Answer Options

Correct Answer A. The difference is due to the control account balance being understated.
B. The difference is due to the ledger account balances being overstated.
C. The difference is due to the control account balance being overstated.
D. The difference is due to the ledger account balances being understated.
Correct Answer
A
Correct Option:
The difference is due to the control account balance being understated.

About This Question

This is Post Utme Greenfield University 2023 Accounting Question 3. It is one of the objective questions from the 2023 Post Utme Greenfield University Accounting examination.

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