Question 14
POST_UTME_IGBINEDION_UNIVERSITY
•
2017
•
ACCOUNTING
•
objective
A company's trial balance shows the following balances:
Debit | Credit
₦ 10,000 | ₦ 12,000
₦ 8,000 | ₦ 6,000
₦ 4,000 | ₦ 2,000
Identify the error and explain the necessary correction.
Answer Options
Correct Answer
A.
The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances.
B.
The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements.
C.
The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements, and to investigate the cause of the error.
D.
The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements, and to investigate the cause of the error, and to take disciplinary action against the person responsible for the error.
Correct Answer
A
Correct Option:
The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances.
About This Question
This is
Post Utme Igbinedion University
2017
Accounting
Question 14.
It is one of the
objective
questions from the
2017
Post Utme Igbinedion University
Accounting
examination.