Bank Reconciliation Statement Quiz Financial Accounting Quiz On Mar 30, 2026 Share Follow the Facebook page Accountants Quiz and join the group Accounting Quiz Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 40 The main purpose of preparing a bank reconciliation statement is? To identify causes of difference between cash book and bank statement To correct the cash book To know the bank balance To know the balance of bank statement 2 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Comparing the cash book balance with the bank statement balance Identifying timing differences Adjusting the cash book for items not recorded Adding bank errors to the cash book Bank errors should be corrected in the bank statement, not added to the cash book. 3 / 40 When check is not paid by the bank, it is called ? Endorsed Dishonored Honored Honored & Endorsed 4 / 40 Which document is used to compare the company's records with the bank's records ? Income statement Bank reconciliation statement Bank deposit slip Cash flow statement The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 5 / 40 Bank reconciliation description is composed of : Business Manager Business Accountant Bank Accountant Controller of the bank 6 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To detect errors in the cash book To calculate the bank's interest To match the company’s records with the bank's records To prepare the financial statements The main purpose of a bank reconciliation statement is to ensure that the company's cash book balances match the bank statement, identifying any discrepancies that need correction. 7 / 40 Which of the following would cause a discrepancy between the cash book and the bank statement ? All the answers Cheques issued but not yet presented Interest charged by the bank Direct debits not yet recorded Discrepancies can arise from various sources such as interest charges, unpresented cheques, and direct debits not recorded in the cash book. 8 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Deposits in transit Recorded bank errors Salaries paid Outstanding cheques Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 9 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Unpresented cheques Direct credits Bank charges Deposits in transit Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 10 / 40 What is the first step in preparing a bank reconciliation ? Adjust the cash book Prepare the final balance Identify outstanding items Compare the opening balances The first step is to compare the opening balances of the cash book and the bank statement to identify any discrepancies at the start. 11 / 40 On the bank statement, cash deposited by the company is known as : Expenses Liability Debit Credit 12 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Uncredited check Unpresented check Dishonored check Omitted check 13 / 40 A bank reconciliation statement is prepared by ? Banker Auditors Registrar Accountant of the business 14 / 40 What is "Deposit in transit" in bank reconciliation? Added to Cashbook Balance Subtracted From Bank Balance Added to Bank Balance Subtracted From the Cash Book Balance 15 / 40 If any amount is directly deposited into the bank then ? Bank book will show double balance Cash book will show double balance Cash book will show less balance & bank book will show more Cash book will show more balance & bank book will show less 16 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business has cash in the bank The business is overdrawn The business owes money to the bank The bank owes money to the business A credit balance on the bank statement indicates that the business has funds available in its bank account. 17 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that have been recorded by the company but not by the bank Deposits that the bank has recorded Deposits that are still with the company Deposits that have been rejected by the bank Deposits in transit are those that have been recorded in the company's books but not yet reflected in the bank statement. 18 / 40 A cheque issued by a company but not yet presented for payment is known as : Outstanding deposit Dishonored cheque Unrecorded deposit Outstanding cheque n outstanding cheque is one that has been issued by the company but has not yet been presented to the bank for payment. 19 / 40 Which of the following is a reason for a bank to dishonor a cheque ? All the answers Post-dated cheque Signature mismatch Insufficient funds A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 20 / 40 A bank reconciliation statement should be prepared : Before preparing the cash book After the cash book is complete At the end of every financial quarter Before closing the financial year The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 21 / 40 If a bank reconciliation reveals that the cash book balance is higher than the bank statement balance, what might this indicate ? Both (There are unpresented cheques) and (There are outstanding deposits) There are unpresented cheques There are outstanding deposits The bank has charged fees Unpresented cheques or outstanding deposits can cause the cash book balance to appear higher than the bank statement balance. 22 / 40 Which of the following is a timing difference in a bank reconciliation ? Bank fees Both Unrecorded deposits and Unpresented cheques Unrecorded deposits Unpresented cheques Timing differences such as unrecorded deposits and unpresented cheques occur because of delays in recording transactions either by the bank or by the business. 23 / 40 Bank reconciliation statement compares a bank statement with ......... Cash payment journal Financial statements Cashbook Cash receipt journal 24 / 40 Unpresented checks also referred to as : Bounced checks Uncollected checks Uncredited checks Outstanding checks 25 / 40 Uncollected checks are also known as? Outstanding checks Both Uncleared checks and Outstation checks Uncleared checks Outstation checks 26 / 40 'NSF' marked in cheque sent back by the bank indicates : A bank couldn't verify the identity Cheque has been forged No sufficient money A cheque cannot be cashed because it's illegal 27 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : Credit side of Bank statement Debit side of cash book None of them Debit side of Bank statement 28 / 40 In cash book, the favourable balance indicates : Adjusted Balance Debit Balance Credit Balance Bank Overdraft 29 / 40 If a cheque has been issued but not yet presented for payment, it is: Neither (Already deducted in the cash book) nor (Not yet recorded in the bank statement) Both (Already deducted in the cash book) and (Not yet recorded in the bank statement) Not yet recorded in the bank statement Already deducted in the cash book An issued cheque is recorded and deducted in the cash book but will not appear in the bank statement until it is presented for payment. 30 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? The bank has already recorded the deposits The deposits have been recorded in the cash book but not in the bank statement The deposits have not been recorded in the cash book The deposits have been dishonored Outstanding deposits are those that have been recorded by the company but not yet reflected in the bank's records. 31 / 40 When should a bank reconciliation statement be prepared ? Monthly Whenever there is a discrepancy Quarterly Annually A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 32 / 40 Bank reconciliation is not a Memorandum statement Ledger account Procedure to provide cash book adjustments Reconcile records 33 / 40 Unfavorable balance means ? Credit balance in Bank statement Credit balance in the cash book Debit balance in cash book Debit balance in petty cash book 34 / 40 Which one of the following is not missing of cash book ? Bank charges debited in bank statement? Outstation check Mistakes in cash book Interest credited in bank, statement 35 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Overdraft account None Bank account Cash account 36 / 40 Which of the following would not affect bank reconciliation ? Bank interest Discount received Dishonored cheque Check not presented 37 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Credit balance in the cash book Debit balance in cash book Credit balance in Bank statement 38 / 40 How are direct debits treated in a bank reconciliation ? Subtracted from the bank statement balance Subtracted from the cash book balance Ignored Added to the cash book balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 39 / 40 Credit balance as per pass book is : Favorable balance None Both Unfavorable balance and Favorable balance Unfavorable balance 40 / 40 Bank statement also called : Debit book Cash book Pass book Credit book Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
