MCQ Hive stays free thanks to ads. Please disable your ad blocker for this site so content and features keep working.
Accounting MCQs
Accounting Mcqs
Q
The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is
AA. The trial balance will not agree
BB. The balance of creditors is understated
CC. The purchases are understated
DD. The favorable bank balance as per pass book is less than the bank balance as per cash book
Correct Answer:
D. D. The favorable bank balance as per pass book is less than the bank balance as per cash book
