Bank Reconciliation Statement Quiz Financial Accounting Quiz On Aug 10, 2024 Share /40 12345678910111213141516171819202122232425262728293031323334353637383940 Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? The deposits have not been recorded in the cash book The deposits have been recorded in the cash book but not in the bank statement The bank has already recorded the deposits 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. 2 / 40 Bank reconciliation statement is? Part of the cash book Part of bank statement A separate statement a sub-division of journal 3 / 40 Bank statement also called : Debit book Pass book Cash book Credit book 4 / 40 A bank reconciliation statement should be prepared : At the end of every financial quarter Before preparing the cash book After the cash book is complete Before closing the financial year The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 5 / 40 A deposit recorded in the bank statement but not in the cash book is called : Dishonored deposit Outstanding deposit Direct deposit Unrecorded deposit An unrecorded deposit is a deposit reflected in the bank statement but not yet recorded in the cash book. 6 / 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 are still with the company Deposits that the bank has recorded 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. 7 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Adding bank errors to the cash book Adjusting the cash book for items not recorded Identifying timing differences Comparing the cash book balance with the bank statement balance Bank errors should be corrected in the bank statement, not added to the cash book. 8 / 40 The main purpose of preparing a bank reconciliation statement is? To correct the cash book To know the balance of bank statement To identify causes of difference between cash book and bank statement To know the bank balance 9 / 40 If a cheque is dishonored, it means : The cheque has been transferred The cheque has been cashed The cheque has been rejected by the bank The cheque has been deposited A dishonored cheque is one that the bank refuses to pay, often due to insufficient funds in the issuer's account. 10 / 40 What is the first step in preparing a bank reconciliation ? Adjust the cash book Compare the opening balances Identify outstanding items Prepare the final balance 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 Which one of the following is not missing of cash book ? Outstation check Bank charges debited in bank statement? Interest credited in bank, statement Mistakes in cash book 12 / 40 What type of cheques is that which is issued by a firm but not deposited to the bank : Bounced cheques Uncredited cheques Uncollected cheques Outstanding cheques 13 / 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 Bank statement Debit side of cash book None of them 14 / 40 If any amount is directly deposited into the bank then ? Cash book will show double balance Bank book will show double balance Cash book will show more balance & bank book will show less Cash book will show less balance & bank book will show more 15 / 40 The balance on the debit side of the bank column of cash book indicate : None of above The total amount has drawn from the bank The total amount overdraft in the bank Cash at bank 16 / 40 In cash book bank charges recorded : both Credit side and Debit side None of them Debit side Credit side 17 / 40 Which document is used to compare the company's records with the bank's records ? Cash flow statement Bank deposit slip Bank reconciliation statement Income statement The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 18 / 40 Unfavorable balance means ? Credit balance in the cash book Debit balance in petty cash book Credit balance in Bank statement Debit balance in cash book 19 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Recorded bank errors Deposits in transit Outstanding cheques Salaries paid Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 20 / 40 Which of the following is a reason for a bank to dishonor a cheque ? Post-dated cheque All the answers Insufficient funds Signature mismatch A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 21 / 40 An unadjusted balance in cash book is because of the result of which error ? Deposit in transit Outstanding checks The omission of Bank charges Unpresented checks 22 / 40 If a bank reconciliation reveals that the cash book balance is higher than the bank statement balance, what might this indicate ? There are unpresented cheques Both (There are unpresented cheques) and (There are outstanding deposits) 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. 23 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Bank charges Outstanding cheques Direct deposits Bank errors Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 24 / 40 When should a bank reconciliation statement be prepared ? Whenever there is a discrepancy Quarterly Monthly Annually A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 25 / 40 How should bank charges be recorded in the cash book ? Subtracted from the cash balance Added to the cash balance Ignored Added to the bank statement balance Bank charges decrease the cash balance and should be subtracted in the cash book. 26 / 40 A cheque issued by a company but not yet presented for payment is known as : Outstanding cheque Outstanding deposit Unrecorded deposit Dishonored cheque n outstanding cheque is one that has been issued by the company but has not yet been presented to the bank for payment. 27 / 40 Which of the following is a timing difference in a bank reconciliation ? Both Unrecorded deposits and Unpresented cheques Unrecorded deposits Unpresented cheques Bank fees Timing differences such as unrecorded deposits and unpresented cheques occur because of delays in recording transactions either by the bank or by the business. 28 / 40 Bank reconciliation description is composed of : Controller of the bank Business Manager Bank Accountant Business Accountant 29 / 40 On the bank statement, cash deposited by the company is known as : Debit Credit Expenses Liability 30 / 40 Bank reconciliation is not a Ledger account Memorandum statement Procedure to provide cash book adjustments Reconcile records 31 / 40 A bank reconciliation statement is prepared by ? Accountant of the business Auditors Registrar Banker 32 / 40 Uncollected checks are also known as? Uncleared checks Outstation checks Both Uncleared checks and Outstation checks Outstanding checks 33 / 40 Which of the following would not affect bank reconciliation ? Bank interest Discount received Dishonored cheque Check not presented 34 / 40 'NSF' marked in cheque sent back by the bank indicates : A bank couldn't verify the identity A cheque cannot be cashed because it's illegal No sufficient money Cheque has been forged 35 / 40 Favorable balance means ? Credit balance in Bank statement Debit balance in cash book both Credit balance in Bank statement and Debit balance in cash book Credit balance in the cash book 36 / 40 What is the effect of bank charges on the bank reconciliation statement ? They decrease the cash book balance They increase the cash book balance They decrease the bank statement balance No effect Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 37 / 40 What is "Deposit in transit" in bank reconciliation? Subtracted From Bank Balance Subtracted From the Cash Book Balance Added to Bank Balance Added to Cashbook Balance 38 / 40 Credit balance as per pass book is : None Unfavorable balance Both Unfavorable balance and Favorable balance Favorable balance 39 / 40 When check is not paid by the bank, it is called ? Endorsed Dishonored Honored & Endorsed Honored 40 / 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. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
