Post Utme Nile University 2020 Accounting Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Nile University Accounting examination.

Post Utme Nile University 2020 Accounting Objective / Multiple Choice
Question 6 POST_UTME_NILE_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?

Answer Options

Correct Answer A. The company has an overdraft facility with the bank.
B. The company's cash book is not up-to-date.
C. The bank has made an error in its statement.
D. The company has deposited cash into its bank account.
Correct Answer
A
Correct Option:
The company has an overdraft facility with the bank.

About This Question

This is Post Utme Nile University 2020 Accounting Question 6. It is one of the objective questions from the 2020 Post Utme Nile University Accounting examination.

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