Wednesday, November 4, 2020

Bank reconciliation statement Practice quiz with answers

 

"You will can get notification in to your  Gmail ,when we are upload our new article . so you can follow this blog site. you can see "follow button on the top line of the blog page, click it. "

Bank Reconciliation

 Bank Reconciliation Statement is a record book of the transactions of a bank account. This statement helps the account holders to check and keep track of their funds and update the transaction record that they have made.

The balance mentioned in the bank passbook of the statement must tally with the balance mentioned in the cash book. In the statement, all the deposit will be shown in the credit column and withdrawals will be shown in the debit column. However, if the withdrawal exceeds deposit it will show a debit balance (overdraft).

Given below are important MCQs on Bank Reconciliation Statement to analyze your understanding of the topic. The answers are also given for your reference.

Bank Reconciliation Statement MCQs

1. In cash book, the favorable balance indicates

A) Credit Balance

B) Debit Balance

C) Bank Overdraft

D) Adjusted Balance

Answer: B

2. On the bank statement, cash deposited by the company is known as

A) Credit

B) Debit

C) Liability

D) Expenses

Answer: A

3. Bank reconciliation statement compares a bank statement with _________

A) Cash payment journal

B) Cash receipt journal

C) Financial statements

D) Cashbook

Answer: D

4. What is “Deposit in transit” in bank reconciliation?

A) Added to Bank Balance

B) Subtracted From Bank Balance

C) Subtracted From the Cash Book Balance

D) Added to Cashbook Balance

Answer: A

5. ‘NSF’ marked in cheque sent back by the bank indicates

A) Cheque has been forged

B) A bank couldn’t verify the identity

C) No sufficient money

D) A cheque cannot be cashed because it’s illegal

Answer: C

6. Bank reconciliation description is composed of

A) Bank Accountant

B) Business Manager

C) Business Accountant

D) Controller of the bank

Answer: C

7. An unadjusted balance in cash book is because of the result of which error?

A) Deposit in transit

B) The omission of Bank charges

C) Outstanding checks

D) Unpresented checks

Answer: B

8. Unpresented checks also referred to as

A) Bounced checks

B) Outstanding checks

C) Uncredited checks

D) Uncollected checks

Answer: B

9. In cash book, bank charges of ₹5,000 was not recorded. Name the correct cash book adjustment

A) It will be credited in cash book

B) It will be debited in cash book

C) No adjustment needed in the cash book

D) Charges will be added to the cash book balance

Answer: A

10. What type of cheques is that which is issued by a firm but not deposited to the bank

A) Uncredited cheques

B) Outstanding cheques

C) Uncollected cheques

D) Bounced cheques

Answer: B


11.$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.
12.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
13.Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.
14.Favorable balance of bank statement implies that
15._________ Checks that are presented to bank but not yet credited by the bank.
16.Which of the following error results in unadjusted cash book balance?
17.In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book.
18.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.
19.___________ are checks that are issued by the business but not yet presented to bank

20.Uncollected checks also referred as______________?

No comments:

Post a Comment

Navigating Financial Alchemy: Unveiling the Intricacies of Contra-Equity Accounts"

  "Navigating Financial Alchemy: Unveiling the Intricacies of Contra-Equity Accounts" Introduction: In the realm of accounting, wh...