Post Utme Noun 2021 Accounting Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Noun Accounting examination.

Post Utme Noun 2021 Accounting Objective / Multiple Choice
Question 6 POST_UTME_NOUN • 2021 • ACCOUNTING • objective

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a bank error. The company's accountant wants to reconcile the two balances. What is the correct procedure to follow?

Answer Options

Correct Answer A. Prepare a bank reconciliation statement to identify the differences between the two balances.
B. Reconcile the cash book balance with the bank statement balance by adjusting the cash book.
C. Ignore the bank error and use the cash book balance as the correct balance.
D. Contact the bank to rectify the error.
Correct Answer
A
Correct Option:
Prepare a bank reconciliation statement to identify the differences between the two balances.

About This Question

This is Post Utme Noun 2021 Accounting Question 6. It is one of the objective questions from the 2021 Post Utme Noun Accounting examination.

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