Bank Reconciliation Statement Quiz Financial Accounting Quiz On Jan 22, 2025 Share /40 12345678910111213141516171819202122232425262728293031323334353637383940 Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 40 On the bank statement, cash deposited by the company is known as : Debit Expenses Liability Credit 2 / 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 The bank has charged fees There are outstanding deposits Unpresented cheques or outstanding deposits can cause the cash book balance to appear higher than the bank statement balance. 3 / 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. 4 / 40 Bank reconciliation statement compares a bank statement with ......... Financial statements Cash payment journal Cashbook Cash receipt journal 5 / 40 If a cheque has been issued but not yet presented for payment, it is: 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 Neither (Already deducted in the cash book) nor (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. 6 / 40 A bank reconciliation statement is prepared by ? Auditors Banker Accountant of the business Registrar 7 / 40 Bank reconciliation description is composed of : Business Manager Business Accountant Controller of the bank Bank Accountant 8 / 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 9 / 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 10 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Bank account Overdraft account None Cash account 11 / 40 In cash book bank charges recorded : None of them Debit side both Credit side and Debit side Credit side 12 / 40 Which of the following is a timing difference in a bank reconciliation ? Unrecorded deposits Unpresented cheques Bank fees Both Unrecorded deposits and 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. 13 / 40 The balance on the debit side of the bank column of cash book indicate : Cash at bank None of above The total amount has drawn from the bank The total amount overdraft in the bank 14 / 40 In cash book, the favourable balance indicates : Debit Balance Adjusted Balance Credit Balance Bank Overdraft 15 / 40 Uncollected checks are also known as? Both Uncleared checks and Outstation checks Outstanding checks Uncleared checks Outstation checks 16 / 40 Which document is used to compare the company's records with the bank's records ? Cash flow statement Bank deposit slip Income statement 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. 17 / 40 Unfavorable balance means ? Debit balance in cash book Credit balance in the cash book Debit balance in petty cash book Credit balance in Bank statement 18 / 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 It will be debited in cash book No adjustment needed in the cash book 19 / 40 If a cheque is dishonored, it means : The cheque has been cashed The cheque has been deposited The cheque has been transferred The cheque has been rejected by the bank A dishonored cheque is one that the bank refuses to pay, often due to insufficient funds in the issuer's account. 20 / 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 21 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business has cash in the bank The bank owes money to the business The business is overdrawn The business owes money to the bank A credit balance on the bank statement indicates that the business has funds available in its bank account. 22 / 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. 23 / 40 Unpresented checks also referred to as : Uncollected checks Outstanding checks Uncredited checks Bounced checks 24 / 40 'NSF' marked in cheque sent back by the bank indicates : A cheque cannot be cashed because it's illegal No sufficient money Cheque has been forged A bank couldn't verify the identity 25 / 40 Which of the following is NOT a step in preparing a bank reconciliation statement ? Adding bank errors to the cash book Identifying timing differences Comparing the cash book balance with the bank statement balance Adjusting the cash book for items not recorded Bank errors should be corrected in the bank statement, not added to the cash book. 26 / 40 A bank reconciliation statement should be prepared : At the end of every financial quarter After the cash book is complete Before preparing the cash book Before closing the financial year The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 27 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Uncredited check Omitted check Dishonored check Unpresented check 28 / 40 Which of the following is a reason for a bank to dishonor a cheque ? All the answers Insufficient funds Signature mismatch Post-dated cheque A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 29 / 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 30 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Deposits in transit Bank charges Direct credits Unpresented cheques Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 31 / 40 When bank statement shows a debit balance, it means : Overdraft balance as per cash book Unfavorable balance as per cash book None of the above Unfavorable balance as per bank book 32 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Direct deposits Bank errors Outstanding cheques Bank charges Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 33 / 40 If any amount is directly deposited into the bank then ? Cash book will show less balance & bank book will show more Cash book will show more balance & bank book will show less Bank book will show double balance Cash book will show double balance 34 / 40 Which of the following would not affect bank reconciliation ? Bank interest Check not presented Discount received Dishonored cheque 35 / 40 Bank reconciliation is not a Memorandum statement Ledger account Reconcile records Procedure to provide cash book adjustments 36 / 40 What type of cheques is that which is issued by a firm but not deposited to the bank : Bounced cheques Outstanding cheques Uncredited cheques Uncollected cheques 37 / 40 What is the first step in preparing a bank reconciliation ? Compare the opening balances Adjust the cash book 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. 38 / 40 Bank statement also called : Debit book Cash book Credit book Pass book 39 / 40 Credit balance as per pass book is : None Favorable balance Unfavorable balance Both Unfavorable balance and Favorable balance 40 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? The deposits have been dishonored 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 Outstanding deposits are those that have been recorded by the company but not yet reflected in the bank's records. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
