Post Utme Mountain Top University 2022 Accounting Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2022 Accounting Objective / Multiple Choice

Question 6 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?

Answer Options

Correct Answer A. The company has an outstanding cheque that has not been presented for payment.

B. The company has deposited cash into the bank but has not yet credited the cash book.

C. The company has written a cheque that has not yet been presented for payment.

D. The company has made an error in the cash book.

Correct Answer

Correct Option:

The company has an outstanding cheque that has not been presented for payment.

About This Question

This is Post Utme Mountain Top University 2022 Accounting Question 6. It is one of the objective questions from the 2022 Post Utme Mountain Top University Accounting examination.

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