Assets QuizBank Reconciliation Statement Quiz 29/06/2026 1 min read Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 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 2 / 40 What is "Deposit in transit" in bank reconciliation? Added to Cashbook Balance Subtracted From the Cash Book Balance Subtracted From Bank Balance Added to Bank Balance 3 / 40 In cash book bank charges recorded : Credit side None of them both Credit side and Debit side Debit side 4 / 40 Bank reconciliation statement is? A separate statement Part of the cash book a sub-division of journal Part of bank statement 5 / 40 Bank reconciliation description is composed of : Bank Accountant Business Manager Business Accountant Controller of the bank 6 / 40 A deposit recorded in the bank statement but not in the cash book is called : Direct deposit Unrecorded deposit Dishonored deposit Outstanding deposit An unrecorded deposit is a deposit reflected in the bank statement but not yet recorded in the cash book. 7 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? 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 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. 8 / 40 Which of the following would not affect bank reconciliation ? Check not presented Discount received Bank interest Dishonored cheque 9 / 40 How are direct debits treated in a bank reconciliation ? Subtracted from the bank statement balance Subtracted from the cash book balance Ignored Added to the cash book balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 10 / 40 When should a bank reconciliation statement be prepared ? Annually Quarterly Monthly Whenever there is a discrepancy A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 11 / 40 Uncollected checks are also known as? Outstanding checks Outstation checks Uncleared checks Both Uncleared checks and Outstation checks 12 / 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 13 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Unpresented cheques Deposits in transit Direct credits Bank charges Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 14 / 40 Which of the following is a reason for a bank to dishonor a cheque ? Post-dated cheque All the answers Insufficient funds Signature mismatch A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 15 / 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. 16 / 40 What type of cheques is that which is issued by a firm but not deposited to the bank : Outstanding cheques Uncollected cheques Bounced cheques Uncredited cheques 17 / 40 Unfavorable balance means ? Debit balance in cash book Debit balance in petty cash book Credit balance in Bank statement Credit balance in the cash book 18 / 40 If any amount is directly deposited into the bank then ? Bank book will show double balance Cash 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 19 / 40 The balance on the debit side of the bank column of cash book indicate : None of above The total amount has drawn from the bank Cash at bank The total amount overdraft in the bank 20 / 40 Which of the following is a timing difference in a bank reconciliation ? Both Unrecorded deposits and Unpresented cheques Unpresented cheques Unrecorded deposits 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. 21 / 40 The main purpose of preparing a bank reconciliation statement is? To identify causes of difference between cash book and bank statement To correct the cash book To know the bank balance To know the balance of bank statement 22 / 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) The bank has charged fees There are unpresented cheques There are outstanding deposits Unpresented cheques or outstanding deposits can cause the cash book balance to appear higher than the bank statement balance. 23 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To prepare the financial statements To calculate the bank's interest To detect errors in the cash book To match the company’s records with the bank's records 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. 24 / 40 Bank reconciliation is not a Procedure to provide cash book adjustments Ledger account Memorandum statement Reconcile records 25 / 40 A bank reconciliation statement should be prepared : After the cash book is complete Before closing the financial year Before preparing the cash book At the end of every financial quarter The bank reconciliation statement should be prepared after the cash book is complete to ensure all transactions are recorded. 26 / 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 They decrease the cash book balance No effect Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 27 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Direct deposits Bank errors Bank charges Outstanding cheques Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 28 / 40 If a cheque is dishonored, it means : The cheque has been cashed The cheque has been rejected by the bank The cheque has been transferred 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. 29 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Bank account Cash account None Overdraft account 30 / 40 When check is not paid by the bank, it is called ? Dishonored Endorsed Honored & Endorsed Honored 31 / 40 Unpresented checks also referred to as : Uncollected checks Uncredited checks Bounced checks Outstanding checks 32 / 40 When bank statement shows a debit balance, it means : Overdraft balance as per cash book None of the above Unfavorable balance as per cash book Unfavorable balance as per bank book 33 / 40 In cash book, the favourable balance indicates : Bank Overdraft Debit Balance Credit Balance Adjusted Balance 34 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that the bank has recorded Deposits that have been recorded by the company but not by the bank Deposits that have been rejected by the bank Deposits that are still with the company Deposits in transit are those that have been recorded in the company's books but not yet reflected in the bank statement. 35 / 40 What is the first step in preparing a bank reconciliation ? Compare the opening balances Identify outstanding items Adjust the cash book 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. 36 / 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 has cash in the bank The bank owes money to the business The business is overdrawn A credit balance on the bank statement indicates that the business has funds available in its bank account. 37 / 40 'NSF' marked in cheque sent back by the bank indicates : A cheque cannot be cashed because it's illegal No sufficient money A bank couldn't verify the identity Cheque has been forged 38 / 40 How should bank charges be recorded in the cash book ? Ignored Added to the bank statement balance Subtracted from the cash balance Added to the cash balance Bank charges decrease the cash balance and should be subtracted in the cash book. 39 / 40 Bank statement also called : Cash book Credit book Pass book Debit book 40 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Omitted check Unpresented check Uncredited check Dishonored check Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
