Favorable balance of bank statement implies that
Favorable balance of bank statement implies that
 | Credit balance |
 | Bank overdraft |
| Adjusted balance |
| Debit balance |
Bank Reconciliation Statement mcqs
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.
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.
| $500 will be debited |
| $1000 will be subtracted |
| $500 will be credited |
| Non-adjustable |
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
| Cash book |
| Cash payment journal |
| Financial statements |
| Cash receipt journal |
Bank reconciliation statement is prepared by____________?
Bank reconciliation statement is prepared by____________?
| Manager of the business |
| Controller of the bank |
| Accountant of the business |
| Accountant of the bank |
Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
| Bank charges need no adjustment in cash book |
| Bank charges will be credited in cash book |
| Bank charges will be added to cash book balance |
| Bank charges will be debited in cash book |
Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.
Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500.
| Zero |
| $2,500 |
| $2,000 |
| $3,000 |
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?
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.
| $2000 will be credited in cash book |
| $4000 will be credited in the cash book |
| $4000 will be debited in cash book |
| $2000 will be debited in cash book |
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
A company was entered in hire purchase agreement and had to pay $1000 per month.
| $3000 will be subtracted from cash book balance |
| $2000 will be deducted from cash book balance |
| $1000 will be added to cash book balance |
| $3000 will be added to cash book balance |
A check returned by bank marked “NSF” means that:
A check returned by bank marked “NSF” means that:
| Check can’t be cashed being illegal |
| There are not sufficient funds in your account |
| Check has been forged |
| Bank can’t verify your identity |
A cash deposit made by business appears on the bank statement as _______ balance?
A cash deposit made by business appears on the bank statement as _______ balance?
| Credit |
| Expenses |
| Liability |
| Debit |
___________ are checks that are issued by the business but not yet presented to bank
___________ are checks that are issued by the business but not yet presented to bank
| Bounced checks |
| Uncollected checks |
| Outstanding checks |
| Uncredited checks |
_________ Checks that are presented to bank but not yet credited by the bank.
_________ Checks that are presented to bank but not yet credited by the bank.
| Unpresented checks |
| Outstanding checks |
| Uncredited checks |
| Bounced checks |
Which of the following error results in unadjusted cash book balance?
Which of the following error results in unadjusted cash book balance?
| Omission of Bank charges |
| Unpresented checks |
| Deposit in transit |
| Outstanding checks |
Unpresented checks also referred as____________?
Unpresented checks also referred as____________?
| Bounced checks |
| Uncollected checks |
| Uncredited checks |
| Outstanding checks |
Uncollected checks also referred as______________?
Uncollected checks also referred as______________?
| Bounced checks |
| Uncredited checks |
| Unpresented checks |
| Outstanding checks |
Standing orders are ________
Standing orders are ________
| Entered in the petty cash balance |
| Debited in the cash book |
| Credited in the cash book |
| Entered in the bank statement |
In the Bank reconciliation statement “Deposit in transit” is usually:
In the Bank reconciliation statement “Deposit in transit” is usually:
| Subtracted from cash book balance |
| Added to bank balance |
| Subtracted from bank balance |
| Added to Cash book balance |
Favorable balance of cash book implies that
Favorable balance of cash book implies that
| Debit balance of cash book |
| Adjusted balance of cash book |
| Credit balance of cash book |
| Bank overdraft |
$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
| $5000 will be debited |
| $5000 will be credited |
| $10,000 will be credited |
| $10,000 will be debited |