Bank Reconciliation Statement Quiz Assets Quiz Share Bank Reconciliation Statement Multiple Choice questions 40 questions in 20 minutes Pass Score 70% 1 / 40 How should bank charges be recorded in the cash book ? Subtracted from the cash balance Ignored Added to the cash balance Added to the bank statement balance Bank charges decrease the cash balance and should be subtracted in the cash book. 2 / 40 'NSF' marked in cheque sent back by the bank indicates : No sufficient money A cheque cannot be cashed because it's illegal A bank couldn't verify the identity Cheque has been forged 3 / 40 When should a bank reconciliation statement be prepared ? Annually Monthly Whenever there is a discrepancy Quarterly A bank reconciliation statement is typically prepared monthly to ensure the accuracy of financial records. 4 / 40 When cash is deposited into bank then the following account would be debited in the company accounts : Overdraft account Cash account None Bank account 5 / 40 A cheque issued by a company but not yet presented for payment is known as : Outstanding cheque Unrecorded deposit Outstanding deposit 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. 6 / 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. 7 / 40 Bank statement also called : Cash book Debit book Pass book Credit book 8 / 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 The total amount has drawn from the bank Cash at bank 9 / 40 Bank reconciliation statement compares a bank statement with ......... Cash payment journal Financial statements Cashbook Cash receipt journal 10 / 40 Which of the following items would NOT appear on a bank reconciliation statement ? Salaries paid Deposits in transit Recorded bank errors Outstanding cheques Salaries paid are regular transactions recorded in the cash book and do not directly affect the bank reconciliation process. 11 / 40 Bank reconciliation statement is? a sub-division of journal Part of the cash book Part of bank statement A separate statement 12 / 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 13 / 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 Cash book will show more balance & bank book will show less Bank book will show double balance 14 / 40 What does it mean if there are outstanding deposits on the bank reconciliation ? The deposits have been dishonored The deposits have not been recorded in the cash book The bank has already recorded the deposits 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. 15 / 40 On the bank statement, cash deposited by the company is known as : Credit Liability Expenses Debit 16 / 40 What is the effect of bank charges on the bank reconciliation statement ? No effect They decrease the cash book balance They decrease the bank statement balance They increase the cash book balance Bank charges reduce the cash book balance and must be recorded in the reconciliation process. 17 / 40 Favorable balance means ? both Credit balance in Bank statement and Debit balance in cash book Credit balance in the cash book Credit balance in Bank statement Debit balance in cash book 18 / 40 If a cheque is dishonored, it means : The cheque has been rejected by the bank The cheque has been cashed 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. 19 / 40 An unadjusted balance in cash book is because of the result of which error ? The omission of Bank charges Outstanding checks Unpresented checks Deposit in transit 20 / 40 What is "Deposit in transit" in bank reconciliation? Added to Cashbook Balance Added to Bank Balance Subtracted From Bank Balance Subtracted From the Cash Book Balance 21 / 40 If a cheque has been issued but not yet presented for payment, it is: Both (Already deducted in the cash book) and (Not yet recorded in the bank statement) Not yet recorded in the bank statement Neither (Already deducted in the cash book) nor (Not yet recorded in the bank statement) Already deducted in the cash book 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. 22 / 40 Which document is used to compare the company's records with the bank's records ? Cash flow statement Bank deposit slip Bank reconciliation statement Income statement The bank reconciliation statement is specifically designed to compare and reconcile differences between the company's records and the bank's records. 23 / 40 Credit balance as per pass book is : None Unfavorable balance Both Unfavorable balance and Favorable balance Favorable balance 24 / 40 A bank reconciliation statement is prepared by ? Accountant of the business Auditors Registrar Banker 25 / 40 Bank reconciliation is not a Reconcile records Procedure to provide cash book adjustments Ledger account Memorandum statement 26 / 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. 27 / 40 Which of the following is a reason for a bank to dishonor a cheque ? Signature mismatch Insufficient funds All the answers Post-dated cheque A cheque can be dishonored for various reasons, including insufficient funds, being post-dated, or having a signature mismatch. 28 / 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 29 / 40 A bank reconciliation statement should be prepared : Before closing the financial year After the cash book is complete 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. 30 / 40 When bank statement shows a debit balance, it means : None of the above Unfavorable balance as per cash book Unfavorable balance as per bank book Overdraft balance as per cash book 31 / 40 What is the first step in preparing a bank reconciliation ? Prepare the final balance Identify outstanding items Adjust the cash book Compare the opening balances The first step is to compare the opening balances of the cash book and the bank statement to identify any discrepancies at the start. 32 / 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 33 / 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. 34 / 40 The main purpose of preparing a bank reconciliation statement is? To correct the cash book To identify causes of difference between cash book and bank statement To know the balance of bank statement To know the bank balance 35 / 40 Which of the following is a timing difference in a bank reconciliation ? Both Unrecorded deposits and Unpresented cheques Bank fees Unpresented cheques Unrecorded deposits Timing differences such as unrecorded deposits and unpresented cheques occur because of delays in recording transactions either by the bank or by the business. 36 / 40 When check is not paid by the bank, it is called ? Honored Honored & Endorsed Endorsed Dishonored 37 / 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 have been rejected by the bank Deposits that are still with the company 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. 38 / 40 Unpresented checks also referred to as : Uncollected checks Bounced checks Uncredited checks Outstanding checks 39 / 40 In cash book, the favourable balance indicates : Credit Balance Adjusted Balance Debit Balance Bank Overdraft 40 / 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a bank reconciliation should be prepared periodically becauseaccounting bank reconciliation statementBank Reconciliation
