Post Utme Madonna University 2024 Accounting Question 40

Practice objective / multiple choice question 40 from the 2024 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2024 Accounting Objective / Multiple Choice
Question 40 POST_UTME_MADONNA_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's bank reconciliation statement showed a difference of ₦10,000 between the company's cash book balance and the bank statement balance. The difference was due to an error in the cash book. What is the effect of this error on the company's financial statements?

Answer Options

A. The error will result in an overstatement of cash.
Correct Answer B. The error will result in an understatement of cash.
C. The error will not affect the financial statements.
D. The error will result in an overstatement of liabilities.
Correct Answer
B
Correct Option:
The error will result in an understatement of cash.

About This Question

This is Post Utme Madonna University 2024 Accounting Question 40. It is one of the objective questions from the 2024 Post Utme Madonna University Accounting examination.

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