Assets 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 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 2 / 40 In cash book, the favourable balance indicates : Debit Balance Adjusted Balance Credit Balance Bank Overdraft 3 / 40 Bank reconciliation statement compares a bank statement with ......... Cashbook Financial statements Cash receipt journal Cash payment journal 4 / 40 The balance on the debit side of the bank column of cash book indicate : The total amount overdraft in the bank None of above Cash at bank The total amount has drawn from the bank 5 / 40 How are direct debits treated in a bank reconciliation ? Subtracted from the cash book balance Added to the cash book balance Ignored Subtracted from the bank statement balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 6 / 40 Bank reconciliation description is composed of : Business Accountant Business Manager Controller of the bank Bank Accountant 7 / 40 What is "Deposit in transit" in bank reconciliation? Subtracted From Bank Balance Subtracted From the Cash Book Balance Added to Bank Balance Added to Cashbook Balance 8 / 40 A bank reconciliation statement should be prepared : Before closing the financial year At the end of every financial quarter Before preparing the cash book 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. 9 / 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. 10 / 40 Which of the following is a timing difference in a bank reconciliation ? Unpresented cheques Unrecorded deposits 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. 11 / 40 What is the effect of bank charges on the bank reconciliation statement ? They decrease the bank statement balance They decrease the cash book balance They increase the cash book balance No effect Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 12 / 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. 13 / 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. 14 / 40 Credit balance as per pass book is : Favorable balance Unfavorable balance Both Unfavorable balance and Favorable balance None 15 / 40 A deposit recorded in the bank statement but not in the cash book is called : Unrecorded deposit Dishonored deposit Direct deposit Outstanding deposit An unrecorded deposit is a deposit reflected in the bank statement but not yet recorded in the cash book. 16 / 40 Bank reconciliation statement is? a sub-division of journal Part of the cash book A separate statement Part of bank statement 17 / 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 credited in cash book It will be debited in cash book 18 / 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 not been recorded in the cash book The deposits have been recorded in the cash book but not in the bank statement Outstanding deposits are those that have been recorded by the company but not yet reflected in the bank's records. 19 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Outstanding cheques Bank errors Bank charges Direct deposits Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 20 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Omitted check Unpresented check Dishonored check Uncredited check 21 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Overdraft account Bank account None Cash account 22 / 40 A bank reconciliation statement is prepared by ? Banker Auditors Registrar Accountant of the business 23 / 40 A cheque issued by a company but not yet presented for payment is known as : Outstanding cheque Outstanding deposit Dishonored 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. 24 / 40 Which one of the following is not missing of cash book ? Outstation check Bank charges debited in bank statement? Mistakes in cash book Interest credited in bank, statement 25 / 40 An unadjusted balance in cash book is because of the result of which error ? Deposit in transit The omission of Bank charges Outstanding checks Unpresented checks 26 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that are still with the company Deposits that have been recorded by the company but not by the bank Deposits that have been rejected by the bank Deposits that the bank has recorded Deposits in transit are those that have been recorded in the company's books but not yet reflected in the bank statement. 27 / 40 When check is not paid by the bank, it is called ? Endorsed Honored & Endorsed Honored Dishonored 28 / 40 In cash book bank charges recorded : Credit side Debit side None of them both Credit side and Debit side 29 / 40 How should bank charges be recorded in the cash book ? Added to the bank statement balance Subtracted from the cash balance Added to the cash balance Ignored Bank charges decrease the cash balance and should be subtracted in the cash book. 30 / 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 Comparing the cash book balance with the bank statement balance Identifying timing differences Bank errors should be corrected in the bank statement, not added to the cash book. 31 / 40 Which document is used to compare the company's records with the bank's records ? Bank deposit slip Income statement Cash flow 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. 32 / 40 Which of the following would cause a discrepancy between the cash book and the bank statement ? Cheques issued but not yet presented Interest charged by the bank All the answers Direct debits not yet recorded Discrepancies can arise from various sources such as interest charges, unpresented cheques, and direct debits not recorded in the cash book. 33 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Outstanding cheques Deposits in transit Recorded bank errors Salaries paid Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 34 / 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 bank balance To know the balance of bank statement To correct the cash book 35 / 40 When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to : Credit side of Bank statement None of them Debit side of cash book Debit side of Bank statement 36 / 40 Unpresented checks also referred to as : Outstanding checks Uncollected checks Bounced checks Uncredited checks 37 / 40 Uncollected checks are also known as? Outstation checks Both Uncleared checks and Outstation checks Outstanding checks Uncleared checks 38 / 40 Bank reconciliation is not a Reconcile records Procedure to provide cash book adjustments Memorandum statement Ledger account 39 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business is overdrawn The bank owes money to the business The business has cash in the bank 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. 40 / 40 On the bank statement, cash deposited by the company is known as : Credit Expenses Liability Debit Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
