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 Uncollected checks are also known as? Outstation checks Uncleared checks Both Uncleared checks and Outstation checks Outstanding checks 2 / 40 Bank statement also called : Pass book Debit book Credit book Cash book 3 / 40 Which of the following would cause a discrepancy between the cash book and the bank statement ? Cheques issued but not yet presented All the answers Direct debits not yet recorded Interest charged by the bank Discrepancies can arise from various sources such as interest charges, unpresented cheques, and direct debits not recorded in the cash book. 4 / 40 If a cheque is dishonored, it means : The cheque has been rejected by the bank The cheque has been deposited The cheque has been transferred The cheque has been cashed A dishonored cheque is one that the bank refuses to pay, often due to insufficient funds in the issuer's account. 5 / 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 deposits have been dishonored 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. 6 / 40 Bank reconciliation statement compares a bank statement with ......... Financial statements Cash payment journal Cashbook Cash receipt journal 7 / 40 A cheque issued by a company but not yet presented for payment is known as : Dishonored cheque Outstanding deposit Outstanding cheque Unrecorded deposit n outstanding cheque is one that has been issued by the company but has not yet been presented to the bank for payment. 8 / 40 Credit balance as per pass book is : Both Unfavorable balance and Favorable balance None Favorable balance Unfavorable balance 9 / 40 'NSF' marked in cheque sent back by the bank indicates : No sufficient money Cheque has been forged A bank couldn't verify the identity A cheque cannot be cashed because it's illegal 10 / 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 Charges will be added to the cash book balance It will be debited in cash book It will be credited in cash book 11 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Deposits in transit Outstanding cheques Salaries paid Recorded bank errors Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 12 / 40 How should bank charges be recorded in the cash book ? Ignored Subtracted from the cash balance Added to the bank statement balance Added to the cash balance Bank charges decrease the cash balance and should be subtracted in the cash book. 13 / 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. 14 / 40 When bank statement shows a debit balance, it means : Unfavorable balance as per cash book Unfavorable balance as per bank book Overdraft balance as per cash book None of the above 15 / 40 What type of cheques is that which is issued by a firm but not deposited to the bank : Bounced cheques Uncollected cheques Outstanding cheques Uncredited cheques 16 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Adjusting the cash book for items not recorded Adding bank errors to the cash book 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. 17 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Dishonored check Uncredited check Unpresented check Omitted check 18 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : Debit side of cash book Credit side of Bank statement None of them Debit side of Bank statement 19 / 40 Bank reconciliation is not a Reconcile records Memorandum statement Ledger account Procedure to provide cash book adjustments 20 / 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. 21 / 40 A bank reconciliation statement should be prepared : Before preparing the cash book Before closing the financial year At the end of every financial quarter After the cash book is complete The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 22 / 40 Which of the following is a timing difference in a bank reconciliation ? Both Unrecorded deposits and Unpresented cheques Unpresented cheques Bank fees 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. 23 / 40 What is the first step in preparing a bank reconciliation ? Identify outstanding items Compare the opening balances Prepare the final balance Adjust the cash book The first step is to compare the opening balances of the cash book and the bank statement to identify any discrepancies at the start. 24 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Outstanding cheques Bank errors Direct deposits Bank charges Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 25 / 40 How are direct debits treated in a bank reconciliation ? Added to the cash book balance Ignored Subtracted from the cash book balance Subtracted from the bank statement balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 26 / 40 A deposit recorded in the bank statement but not in the cash book is called : Dishonored deposit Direct deposit Outstanding deposit Unrecorded deposit An unrecorded deposit is a deposit reflected in the bank statement but not yet recorded in the cash book. 27 / 40 An unadjusted balance in cash book is because of the result of which error ? Unpresented checks Outstanding checks The omission of Bank charges Deposit in transit 28 / 40 The balance on the debit side of the bank column of cash book indicate : The total amount has drawn from the bank None of above Cash at bank The total amount overdraft in the bank 29 / 40 Which one of the following is not missing of cash book ? Outstation check Interest credited in bank, statement Bank charges debited in bank statement? Mistakes in cash book 30 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that are still with the company Deposits that the bank has recorded Deposits that have been rejected by the bank 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. 31 / 40 Which document is used to compare the company's records with the bank's records ? Income statement Cash flow statement Bank deposit slip Bank reconciliation statement The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 32 / 40 What is "Deposit in transit" in bank reconciliation? Subtracted From Bank Balance Added to Bank Balance Added to Cashbook Balance Subtracted From the Cash Book Balance 33 / 40 Unfavorable balance means ? Debit balance in petty cash book Credit balance in the cash book Credit balance in Bank statement Debit balance in cash book 34 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Bank charges Direct credits Unpresented cheques Deposits in transit Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 35 / 40 When should a bank reconciliation statement be prepared ? Whenever there is a discrepancy Annually Quarterly Monthly A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 36 / 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 Both (There are unpresented cheques) and (There are outstanding deposits) There are outstanding deposits Unpresented cheques or outstanding deposits can cause the cash book balance to appear higher than the bank statement balance. 37 / 40 What is the effect of bank charges on the bank reconciliation statement ? No effect They decrease the cash book balance They decrease the bank statement balance They increase the cash book balance Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 38 / 40 Which of the following would not affect bank reconciliation ? Check not presented Bank interest Dishonored cheque Discount received 39 / 40 Favorable balance means ? Credit balance in the cash book Debit balance in cash book both Credit balance in Bank statement and Debit balance in cash book Credit balance in Bank statement 40 / 40 Unpresented checks also referred to as : Uncollected checks Uncredited checks Outstanding checks Bounced checks Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
