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 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. 2 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Identifying timing differences Adding bank errors to the cash book Adjusting the cash book for items not recorded 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. 3 / 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 Direct debits not yet recorded Cheques issued but not yet presented Discrepancies can arise from various sources such as interest charges, unpresented cheques, and direct debits not recorded in the cash book. 4 / 40 When check is not paid by the bank, it is called ? Endorsed Honored Dishonored Honored & Endorsed 5 / 40 In cash book, bank charges of $ 1,000 was not recorded. Name the correct cash book adjustment : It will be credited in cash book Charges will be added to the cash book balance No adjustment needed in the cash book It will be debited in cash book 6 / 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) 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. 7 / 40 On the bank statement, cash deposited by the company is known as : Expenses Credit Debit Liability 8 / 40 Bank statement also called : Debit book Credit book Cash book Pass book 9 / 40 Which of the following is a reason for a bank to dishonor a cheque ? All the answers Post-dated cheque Insufficient funds Signature mismatch A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 10 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To calculate the bank's interest To match the company’s records with the bank's records To prepare the financial statements To detect errors in the cash book 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. 11 / 40 Which of the following is a timing difference in a bank reconciliation ? Unpresented cheques Bank fees Both Unrecorded deposits and Unpresented cheques Unrecorded deposits Timing differences such as unrecorded deposits and unpresented cheques occur because of delays in recording transactions either by the bank or by the business. 12 / 40 What is "Deposit in transit" in bank reconciliation? Added to Bank Balance Subtracted From the Cash Book Balance Added to Cashbook Balance Subtracted From Bank Balance 13 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The bank owes money to the business The business owes money to the bank The business has cash in the bank The business is overdrawn A credit balance on the bank statement indicates that the business has funds available in its bank account. 14 / 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 The bank has charged fees 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. 15 / 40 Credit balance as per pass book is : None Both Unfavorable balance and Favorable balance Favorable balance Unfavorable balance 16 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Direct deposits Bank charges Bank errors Outstanding cheques Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 17 / 40 Bank reconciliation statement compares a bank statement with ......... Cashbook Cash receipt journal Financial statements Cash payment journal 18 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Outstanding cheques Recorded bank errors Deposits in transit Salaries paid Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 19 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : Debit side of Bank statement Debit side of cash book Credit side of Bank statement None of them 20 / 40 Which of the following would not affect bank reconciliation ? Check not presented Bank interest Dishonored cheque Discount received 21 / 40 What type of cheques is that which is issued by a firm but not deposited to the bank : Outstanding cheques Bounced cheques Uncollected cheques Uncredited cheques 22 / 40 How are direct debits treated in a bank reconciliation ? Subtracted from the cash book balance Subtracted from the bank statement balance Ignored Added to the cash book balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 23 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Credit balance in the cash book Credit balance in Bank statement Debit balance in cash book 24 / 40 A bank reconciliation statement is prepared by ? Auditors Accountant of the business Registrar Banker 25 / 40 In cash book, the favourable balance indicates : Debit Balance Credit Balance Adjusted Balance Bank Overdraft 26 / 40 When should a bank reconciliation statement be prepared ? Monthly Annually Quarterly Whenever there is a discrepancy A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 27 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? The deposits have been dishonored 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 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. 28 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Direct credits Unpresented cheques Deposits in transit Bank charges Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 29 / 40 An unadjusted balance in cash book is because of the result of which error ? Unpresented checks Deposit in transit Outstanding checks The omission of Bank charges 30 / 40 When bank statement shows a debit balance, it means : None of the above Unfavorable balance as per bank book Unfavorable balance as per cash book Overdraft balance as per cash book 31 / 40 What is the first step in preparing a bank reconciliation ? Adjust the cash book Identify outstanding items Prepare the final balance 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. 32 / 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. 33 / 40 How should bank charges be recorded in the cash book ? Added to the cash balance Added to the bank statement balance Ignored Subtracted from the cash balance Bank charges decrease the cash balance and should be subtracted in the cash book. 34 / 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 35 / 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 36 / 40 What is the effect of bank charges on the bank reconciliation statement ? They decrease the bank statement balance No effect They decrease the cash book balance They increase the cash book balance Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 37 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Unpresented check Dishonored check Uncredited check Omitted check 38 / 40 In cash book bank charges recorded : both Credit side and Debit side Debit side Credit side None of them 39 / 40 If any amount is directly deposited into the bank then ? 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 Cash book will show double balance 40 / 40 The main purpose of preparing a bank reconciliation statement is? To know the bank balance To know the balance of bank statement To identify causes of difference between cash book and bank statement To correct the cash book Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
