Post Utme Noun 2020 Accounting Question 37

Practice objective / multiple choice question 37 from the 2020 Post Utme Noun Accounting examination.

Post Utme Noun 2020 Accounting Objective / Multiple Choice

Question 37 POST_UTME_NOUN • 2020 • ACCOUNTING • objective

A company's cash book shows a credit balance of ₦25,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?

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 the bank has not yet credited the account.

C. The company has withdrawn cash from the bank but the bank has not yet debited the account.

D. The company has an error in its cash book.

Correct Answer

Correct Option:

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

This is Post Utme Noun 2020 Accounting Question 37. It is one of the objective questions from the 2020 Post Utme Noun Accounting examination.

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