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 Bank reconciliation statement is? A separate statement a sub-division of journal Part of bank statement Part of the cash book 2 / 40 Uncollected checks are also known as? Both Uncleared checks and Outstation checks Uncleared checks Outstation checks Outstanding checks 3 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? 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 The deposits have not been recorded in the cash book Outstanding deposits are those that have been recorded by the company but not yet reflected in the bank's records. 4 / 40 'NSF' marked in cheque sent back by the bank indicates : No sufficient money Cheque has been forged A cheque cannot be cashed because it's illegal A bank couldn't verify the identity 5 / 40 In cash book, bank charges of $ 1,000 was not recorded. Name the correct cash book adjustment : No adjustment needed in the cash book It will be credited in cash book It will be debited in cash book Charges will be added to the cash book balance 6 / 40 A bank reconciliation statement should be prepared : After the cash book is complete Before closing the financial year At the end of every financial quarter Before preparing the cash book The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 7 / 40 Bank reconciliation statement compares a bank statement with ......... Cash receipt journal Cashbook Cash payment journal Financial statements 8 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Identifying timing differences Comparing the cash book balance with the bank statement balance Adding bank errors to the cash book Adjusting the cash book for items not recorded Bank errors should be corrected in the bank statement, not added to the cash book. 9 / 40 Which document is used to compare the company's records with the bank's records ? Bank deposit slip Bank reconciliation statement Income statement 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. 10 / 40 When should a bank reconciliation statement be prepared ? Annually Quarterly Whenever there is a discrepancy Monthly A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 11 / 40 When bank statement shows a debit balance, it means : Unfavorable balance as per bank book None of the above Overdraft balance as per cash book Unfavorable balance as per cash book 12 / 40 The balance on the debit side of the bank column of cash book indicate : None of above Cash at bank The total amount has drawn from the bank The total amount overdraft in the bank 13 / 40 How are direct debits treated in a bank reconciliation ? Subtracted from the cash book balance Added to the cash book balance Subtracted from the bank statement balance Ignored Direct debits reduce the cash book balance and need to be recorded during reconciliation. 14 / 40 What is the effect of bank charges on the bank reconciliation statement ? They increase the cash book balance They decrease 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. 15 / 40 Which one of the following is not missing of cash book ? Bank charges debited in bank statement? Mistakes in cash book Interest credited in bank, statement Outstation check 16 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Direct credits Bank charges Deposits in transit Unpresented cheques Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 17 / 40 The main purpose of preparing a bank reconciliation statement is? To identify causes of difference between cash book and bank statement To know the balance of bank statement To correct the cash book To know the bank balance 18 / 40 In cash book, the favourable balance indicates : Bank Overdraft Debit Balance Adjusted Balance Credit Balance 19 / 40 Which of the following would cause a discrepancy between the cash book and the bank statement ? All the answers Interest charged by the bank Cheques issued but not yet presented 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. 20 / 40 If a bank reconciliation reveals that the cash book balance is higher than the bank statement balance, what might this indicate ? The bank has charged fees There are unpresented cheques There are outstanding deposits Both (There are unpresented cheques) and (There are outstanding deposits) Unpresented cheques or outstanding deposits can cause the cash book balance to appear higher than the bank statement balance. 21 / 40 Bank reconciliation is not a Memorandum statement Ledger account Procedure to provide cash book adjustments Reconcile records 22 / 40 An unadjusted balance in cash book is because of the result of which error ? The omission of Bank charges Outstanding checks Unpresented checks Deposit in transit 23 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Debit balance in cash book Credit balance in the cash book Credit balance in Bank statement 24 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Omitted check Unpresented check Dishonored check Uncredited check 25 / 40 Which of the following is a timing difference in a bank reconciliation ? Unpresented cheques Unrecorded deposits Both Unrecorded deposits and 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. 26 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business owes money to the bank The business is overdrawn The business has cash in 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. 27 / 40 A deposit recorded in the bank statement but not in the cash book is called : Direct deposit Dishonored deposit Outstanding deposit Unrecorded deposit An unrecorded deposit is a deposit reflected in the bank statement but not yet recorded in the cash book. 28 / 40 If a cheque has been issued but not yet presented for payment, it is: Both (Already deducted in the cash book) and (Not yet recorded in the bank statement) Neither (Already deducted in the cash book) nor (Not yet recorded in the bank statement) Already deducted in the cash book Not yet recorded in the bank statement 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. 29 / 40 If any amount is directly deposited into the bank then ? Cash book will show more balance & bank book will show less Cash book will show less balance & bank book will show more Bank book will show double balance Cash book will show double balance 30 / 40 When check is not paid by the bank, it is called ? Endorsed Honored Dishonored Honored & Endorsed 31 / 40 Bank reconciliation description is composed of : Bank Accountant Business Accountant Business Manager Controller of the bank 32 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : Credit side of Bank statement None of them Debit side of cash book Debit side of Bank statement 33 / 40 Which of the following would not affect bank reconciliation ? Bank interest Discount received Check not presented Dishonored cheque 34 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To calculate the bank's interest To detect errors in the cash book 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. 35 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Deposits in transit Salaries paid Outstanding cheques Recorded bank errors Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 36 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that are still with the company Deposits that have been rejected by the bank Deposits that the bank has recorded Deposits that have been recorded by the company but not 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. 37 / 40 Credit balance as per pass book is : Favorable balance Unfavorable balance None Both Unfavorable balance and Favorable balance 38 / 40 Bank statement also called : Pass book Cash book Debit book Credit book 39 / 40 Unfavorable balance means ? Credit balance in the cash book Debit balance in petty cash book Debit balance in cash book Credit balance in Bank statement 40 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Bank errors Bank charges Outstanding cheques Direct deposits Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
