Bank Reconciliation Statement Quiz Assets Quiz Share Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 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. 2 / 40 On the bank statement, cash deposited by the company is known as : Expenses Liability Credit Debit 3 / 40 What is the primary purpose of a Bank Reconciliation Statement ? To calculate the bank's interest To detect errors in the cash book To match the companyβs records with the bank's records To prepare the financial statements 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. 4 / 40 If a cheque has been issued but not yet presented for payment, it is: 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) Already deducted in the cash book 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. 5 / 40 How are direct debits treated in a bank reconciliation ? Ignored Subtracted from the bank statement balance Added to the cash book balance Subtracted from the cash book balance Direct debits reduce the cash book balance and need to be recorded during reconciliation. 6 / 40 What does the term "deposits in transit" mean in a bank reconciliation ? Deposits that have been rejected by the bank Deposits that the bank has recorded Deposits that have been recorded by the company but not 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. 7 / 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. 8 / 40 Which of the following would not affect bank reconciliation ? Check not presented Discount received Dishonored cheque Bank interest 9 / 40 Which one of the following is not missing of cash book ? Outstation check Bank charges debited in bank statement? Interest credited in bank, statement Mistakes in cash book 10 / 40 When bank statement shows a debit balance, it means : Unfavorable balance as per bank book Overdraft balance as per cash book Unfavorable balance as per cash book None of the above 11 / 40 Which of the following is a timing difference in a bank reconciliation ? Bank fees Unrecorded deposits Both Unrecorded deposits and Unpresented cheques 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. 12 / 40 Bank reconciliation is not a Procedure to provide cash book adjustments Reconcile records Ledger account Memorandum statement 13 / 40 Which of the following would increase the cash book balance but not the bank statement balance ? Unpresented cheques Bank charges Deposits in transit Direct credits Deposits in transit have been recorded in the cash book but have not yet been recorded by the bank. 14 / 40 Uncollected checks are also known as? Outstation checks Both Uncleared checks and Outstation checks Uncleared checks Outstanding checks 15 / 40 A bank reconciliation statement is prepared by ? Accountant of the business Registrar Banker Auditors 16 / 40 If the bank statement shows a credit balance, what does it mean for the business ? The business owes money to the bank The bank owes money to the business 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. 17 / 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. 18 / 40 An unadjusted balance in cash book is because of the result of which error ? Outstanding checks The omission of Bank charges Deposit in transit Unpresented checks 19 / 40 The check which is deposited into bank but not cleared at the end of a particular year is called : Unpresented check Omitted check Uncredited check Dishonored check 20 / 40 Credit balance as per pass book is : Unfavorable balance None Favorable balance Both Unfavorable balance and Favorable balance 21 / 40 In cash book, the favourable balance indicates : Bank Overdraft Credit Balance Debit Balance Adjusted Balance 22 / 40 Bank reconciliation statement compares a bank statement with ......... Cash receipt journal Cashbook Financial statements Cash payment journal 23 / 40 Which of the following is a reason for a bank to dishonor a cheque ? Insufficient funds Post-dated cheque Signature mismatch All the answers A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 24 / 40 In cash book bank charges recorded : Credit side both Credit side and Debit side Debit side None of them 25 / 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. 26 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Outstanding cheques Deposits in transit Salaries paid Recorded bank errors Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 27 / 40 When should a bank reconciliation statement be prepared ? Monthly Quarterly Annually Whenever there is a discrepancy A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 28 / 40 What is the first step in preparing a bank reconciliation ? Prepare the final balance Identify outstanding items Compare the opening balances 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. 29 / 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 30 / 40 How should bank charges be recorded in the cash book ? Subtracted from the cash balance Ignored 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. 31 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : None Overdraft account Bank account Cash account 32 / 40 Which document is used to compare the company's records with the bank's records ? Bank reconciliation statement Bank deposit slip Income statement Cash flow statement The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 33 / 40 A cheque issued by a company but not yet presented for payment is known as : Dishonored cheque Outstanding cheque Unrecorded deposit Outstanding deposit n outstanding cheque is one that has been issued by the company but has not yet been presented to the bank for payment. 34 / 40 Bank reconciliation statement is? A separate statement Part of the cash book a sub-division of journal Part of bank statement 35 / 40 When check is not paid by the bank, it is called ? Dishonored Honored & Endorsed Endorsed Honored 36 / 40 'NSF' marked in cheque sent back by the bank indicates : Cheque has been forged A cheque cannot be cashed because it's illegal No sufficient money A bank couldn't verify the identity 37 / 40 Which item would you subtract from the bank statement balance during a reconciliation? Bank errors Direct deposits Bank charges Outstanding cheques Outstanding cheques are subtracted from the bank statement balance because they are yet to be presented for payment. 38 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Credit balance in the cash book Debit balance in cash book Credit balance in Bank statement 39 / 40 Unfavorable balance means ? Credit balance in the cash book Debit balance in cash book Credit balance in Bank statement Debit balance in petty cash book 40 / 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
