How is a ‘deposit in transit’ usually treated in a bank reconciliation statement?
Correct answer A. Added to bank balance
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Accounting MCQs
Page 22 of Accounting multiple-choice questions with answers. Tap an option to check yourself.
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What are unpresented cheques also called?
Correct answer D. Outstanding checks
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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How are standing orders recorded?
Correct answer A. Credited in the cash book
By what other name are uncollected cheques known?
Correct answer B. Uncredited cheques
What are cheques that a business has issued but that have not yet been presented to the bank called?
Correct answer C. Outstanding cheques
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
In a bank reconciliation statement, the amount of outstanding cheques is added to which balance of the cash book?
Correct answer A. Adjusted
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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What does a favourable balance on a bank statement mean?
Correct answer B. Credit balance
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
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
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