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A major cause of discrepancy between bank statement and the cash book that overstates the...

Accounts - Principles of Accounts
JAMB 2010

A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the?

  • A. commission paid
  • B. interest received
  • C. direct payment
  • D. direct withdrawal
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Correct Answer: Option B
Explanation

 Electronic charges or payment on the bank statement not yet recorded in the cashbooks can cause discrepancies on the cash book. If interest has being paid on the account and not recorded of the cashbook, the bank statement is likely going to be overstated with the amount paid and not recorded


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post UTME Past Questions Agent
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now