Financial Accounting QuizBank Reconciliation Statement Quiz 30/05/2026 1 min read Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 40 Which document is used to compare the company's records with the bank's records ? Income statement Cash flow statement Bank reconciliation statement Bank deposit slip The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 2 / 40 Uncollected checks are also known as? Both Uncleared checks and Outstation checks Outstanding checks Uncleared checks Outstation checks 3 / 40 In cash book, the favourable balance indicates : Adjusted Balance Credit Balance Debit Balance Bank Overdraft 4 / 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 deposits have not been recorded in the cash book The bank has already recorded the deposits Outstanding deposits are those that have been recorded by the company but not yet reflected in the bank's records. 5 / 40 If any amount is directly deposited into the bank then ? Cash book will show double balance Cash book will show less balance & bank book will show more Bank book will show double balance Cash book will show more balance & bank book will show less 6 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business has cash in the bank The business owes money to the bank The business is overdrawn 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. 7 / 40 If a cheque is dishonored, it means : The cheque has been cashed The cheque has been transferred 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. 8 / 40 What is the effect of bank charges on the bank reconciliation statement ? They increase the cash book balance They decrease the bank statement balance No effect They decrease the cash book balance Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 9 / 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. 10 / 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 know the bank balance To correct the cash book 11 / 40 The balance on the debit side of the bank column of cash book indicate : Cash at bank The total amount overdraft in the bank None of above The total amount has drawn from the bank 12 / 40 If a cheque has been issued but not yet presented for payment, it is: Already deducted in the cash book Not yet recorded in the bank statement 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) 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. 13 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Uncredited check Unpresented check Omitted check Dishonored check 14 / 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. 15 / 40 When check is not paid by the bank, it is called ? Honored Dishonored Endorsed Honored & Endorsed 16 / 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. 17 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : None of them Credit side of Bank statement Debit side of Bank statement Debit side of cash book 18 / 40 'NSF' marked in cheque sent back by the bank indicates : Cheque has been forged A cheque cannot be cashed because it's illegal A bank couldn't verify the identity No sufficient money 19 / 40 In cash book, bank charges of $ 1,000 was not recorded. Name the correct cash book adjustment : It will be debited in cash book Charges will be added to the cash book balance It will be credited in cash book No adjustment needed in the cash book 20 / 40 Bank reconciliation description is composed of : Controller of the bank Business Manager Business Accountant Bank Accountant 21 / 40 How should bank charges be recorded in the cash book ? Added to the cash balance Subtracted from the cash balance Ignored Added to the bank statement balance Bank charges decrease the cash balance and should be subtracted in the cash book. 22 / 40 Bank reconciliation is not a Reconcile records Memorandum statement Procedure to provide cash book adjustments Ledger account 23 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Overdraft account None Bank account Cash account 24 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Credit balance in Bank statement Debit balance in cash book Credit balance in the cash book 25 / 40 A cheque issued by a company but not yet presented for payment is known as : Outstanding deposit Unrecorded deposit Outstanding cheque 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. 26 / 40 Credit balance as per pass book is : None Unfavorable balance Both Unfavorable balance and Favorable balance Favorable balance 27 / 40 Which of the following would not affect bank reconciliation ? Discount received Bank interest Check not presented Dishonored cheque 28 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To prepare the financial statements To detect errors in the cash book To match the company’s records with the bank's records To calculate the bank's interest 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. 29 / 40 Bank reconciliation statement compares a bank statement with ......... Cash payment journal Financial statements Cashbook Cash receipt journal 30 / 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. 31 / 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 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. 32 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Unpresented cheques Direct credits Deposits in transit Bank charges Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 33 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Direct deposits Outstanding cheques Bank errors Bank charges Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 34 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Recorded bank errors Salaries paid Deposits in transit Outstanding cheques Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 35 / 40 How are direct debits treated in a bank reconciliation ? Added to the cash book balance Ignored Subtracted from the bank statement balance Subtracted from the cash book balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 36 / 40 Bank reconciliation statement is? Part of bank statement Part of the cash book A separate statement a sub-division of journal 37 / 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 38 / 40 When bank statement shows a debit balance, it means : Overdraft balance as per cash book Unfavorable balance as per bank book None of the above Unfavorable balance as per cash book 39 / 40 Which of the following is a reason for a bank to dishonor a cheque ? Signature mismatch Post-dated cheque All the answers Insufficient funds A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 40 / 40 When should a bank reconciliation statement be prepared ? Quarterly Whenever there is a discrepancy Monthly Annually A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
