Post Utme Lautech 2025 Accounting Question 28

Practice objective / multiple choice question 28 from the 2025 Post Utme Lautech Accounting examination.

Post Utme Lautech 2025 Accounting Objective / Multiple Choice
Question 28 POST_UTME_LAUTECH • 2025 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. However, the company's cash book shows a cash balance of ₦50,000 and a current liabilities balance of ₦25,000. What is the correct explanation for this discrepancy?

Answer Options

A. The company has an outstanding invoice that has not been recorded.
B. The company has paid an invoice that has not been recorded.
Correct Answer C. The company has recorded an incorrect entry in the cash account.
D. The company has an error in the current liabilities account.
Correct Answer
C
Correct Option:
The company has recorded an incorrect entry in the cash account.

About This Question

This is Post Utme Lautech 2025 Accounting Question 28. It is one of the objective questions from the 2025 Post Utme Lautech Accounting examination.

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