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Bank reconciliation statement MCQs

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Question 21 Bank reconciliation statement

A bank reconciliation statement compares the bank statement sent by the bank with which record prepared by the business?

Correct answer A. Cash book

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Question 22 Bank reconciliation statement

How is a ‘deposit in transit’ usually treated in a bank reconciliation statement?

Correct answer A. Added to bank balance

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Question 23 Bank reconciliation statement

What are unpresented cheques also called?

Correct answer D. Outstanding checks

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Question 24 Bank reconciliation statement

A supplier allowed a $2,000 discount for prompt payment, but the cashier recorded the gross amount in the cash book. What adjustment is needed to correct the cash book balance?

Correct answer A. $2000 will be debited in cash book

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Question 25 Bank reconciliation statement

How are standing orders recorded?

Correct answer A. Credited in the cash book

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Question 26 Bank reconciliation statement

By what other name are uncollected cheques known?

Correct answer B. Uncredited cheques

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Question 27 Bank reconciliation statement

What are cheques that a business has issued but that have not yet been presented to the bank called?

Correct answer C. Outstanding cheques

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Question 28 Bank reconciliation statement

The bank sent the company a debit advice for $500 of interest on its overdraft, which has not been recorded in the cash book. How should the cash book be adjusted?

Correct answer B. $500 will be credited

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Question 29 Bank reconciliation statement

In a bank reconciliation statement, the amount of outstanding cheques is added to which balance of the cash book?

Correct answer A. Adjusted

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Question 30 Bank reconciliation statement

What are cheques that have been paid into the bank but not yet credited by the bank called?

Correct answer C. Uncredited cheques

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Question 31 Bank reconciliation statement

What does a favourable balance on a bank statement mean?

Correct answer B. Credit balance

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Question 32 Bank reconciliation statement

The adjusted cash book balance is $1,000, unpresented cheques total $2,000, uncredited cheques total $500 and deposits in transit total $500. What is the balance per the bank statement?

Correct answer D. $2000

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Question 33 Bank reconciliation statement

A company under a hire purchase agreement pays $1,000 a month. Three payments went through the bank account but were not entered in the cash book. What adjustment is needed to the cash book?

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

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Question 34 Bank reconciliation statement

A bank deposit of $5000 was mistakenly entered twice in the cash book. What correcting entry is needed in the cash book?

Correct answer C. $5000 will be credited

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