Entered in the petty cash balance

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Bank reconciliation statement MCQs

Bank reconciliation statement MCQs test how you match a business's cash book with the bank statement and explain the differences, such as unpresented cheques, uncredited deposits and dishonoured cheques. They help commerce students, accounting job applicants and banking test candidates. Every question shows its correct answer instantly, so you can check each adjustment.

Question 01 Bank reconciliation statement

A cash deposit made by business appears on the bank statement as ____ balance?

Correct answer B. Credit

Open question

Question 02 Bank reconciliation statement

A check returned by bank marked “NSF” means that:

Correct answer B. There are not sufficient funds in your account

Open question

Question 03 Bank reconciliation statement

Bank reconciliation statement is prepared by?

Correct answer A. Accountant of the business

Open question

Question 04 Bank reconciliation statement

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

Correct answer C. Bank charges will be credited in cash book

Open question

Question 05 Bank reconciliation statement

Favorable balance of cash book implies that

Correct answer B. Debit balance of cash book

Open question

Question 06 Bank reconciliation statement

Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the ____ (prepared by business).

Correct answer C. Cash book

Open question

Question 07 Bank reconciliation statement

In the Bank reconciliation statement “Deposit in transit” is usually:

Correct answer B. Added to bank balance

Open question

Question 08 Bank reconciliation statement

Unpresented checks also referred as?

Correct answer C. Outstanding checks

Open question

Question 09 Bank reconciliation statement

A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

Correct answer B. $2000 will be credited in cash book

Open question

Question 10 Bank reconciliation statement

Standing orders are

Correct answer A. Credited in the cash book

Open question

Question 11 Bank reconciliation statement

Uncollected checks also referred as?

Correct answer B. Uncredited checks

Open question

Question 12 Bank reconciliation statement

____ are checks that are issued by the business but not yet presented to bank

Correct answer C. Outstanding checks

Open question

Question 13 Bank reconciliation statement

Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

Correct answer B. $500 will be credited

Open question

Question 14 Bank reconciliation statement

In bank reconciliation statement the amount of outstanding checks is added to ____ balance of cash book.

Correct answer A. Adjusted

Open question

Question 15 Bank reconciliation statement

Which of the following error results in unadjusted cash book balance?

Correct answer A. Outstanding checks

Open question

Question 16 Bank reconciliation statement

____ Checks that are presented to bank but not yet credited by the bank.

Correct answer B. Uncredited checks

Open question

Question 17 Bank reconciliation statement

Favorable balance of bank statement implies that

Correct answer A. Credit balance

Open question

Question 18 Bank reconciliation statement

Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.

Correct answer A. $2000

Open question

Question 19 Bank reconciliation statement

A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

Correct answer D. $3000 will be subtracted from cash book balance

Open question

Question 20 Bank reconciliation statement

$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.

Correct answer A. $5000 will be credited

Open question

About Bank reconciliation statement MCQs

A bank reconciliation statement explains why the cash book balance and the bank statement balance differ on a given date. Questions on this page cover cheques issued but not yet presented, also called outstanding or unpresented cheques, and cheques deposited but not yet credited, known as uncredited or deposits in transit. You will also find items on NSF cheques returned for insufficient funds, how a deposit appears as a credit balance on the bank statement, and correcting errors such as a deposit entered twice in the cash book. These are routine questions in accounting and banking tests.

Exams that include Bank reconciliation statement MCQs

Pakistan

Banking job tests
PPSC
FPSC
NTS

India

IBPS Clerk
IBPS PO
SSC CGL

Bangladesh

Bank job exams
Bangladesh Bank recruitment
BCS

Frequently asked questions

Why is a bank reconciliation statement prepared?

It is prepared to explain the difference between the cash book balance and the bank statement balance, and to detect errors or fraud. Differences usually arise from timing, such as unpresented cheques and uncredited deposits, or from items the business has not yet recorded, such as bank charges and interest.

What does an NSF cheque mean?

NSF stands for not sufficient funds. An NSF cheque is one the bank has returned because the drawer's account did not have enough money to pay it. The business must reduce its cash book balance and restore the amount as owed by the customer.

How many Bank Reconciliation Statement MCQs are on MCQs360?

MCQs360 has 20 Bank Reconciliation Statement MCQs, free to practise with no sign-up and with instant answers. They cover the adjustments most often tested in accounting papers and bank recruitment exams. Try writing out the full adjustment for each one before you check.

Last reviewed October 2026