Chapter 14 Bank Reconciliation Statement

Which of the following types of account would traders open in order to lodge day to day receipts and issues cheques?

• Loan Account

• Current Account

• Savings Account

• Fixed Deposit Account

From a bank's point of view, deposits received from customers are treated as which of the following accounting elements?

• Income

• Expenses

• Assets

• Liabilities

An enterprise can request its bank to make payments of varying amounts from business bank account. It is known as ______________.

• Deposited Cheque Returned

• Credit Transfer

• Standing Order

• Direct Debits

A cheque which has been drawn but not yet shown on bank statement refers to which of the following items?

• Credit Transfer

• Dishonoured Cheque

• Uncredited Deposit

• Unpresented Cheque

If the Bank Statement balance does not agree with the bank balance of the Cash Book, then _________.

• the Cash Book should be regarded as the correct record of transactions

• the Bank Statement should be regarded as the correct record of transactions

• a Bank Reconciliation Statement should be prepared

• the difference could be either a current asset or current liability

A bank overdraft will appear as a __________balance in Bank Statement.

• debit

• credit

A cheque for RM100 drawn for rental had been credited to the cash book as RM1. If the business prepare the BRS (starting with CB balance), which of the following is true?

• Add RM99

• Less RM99

• Add RM101

• Less RM101

The Bank Statement shows a credit balance of RM960, but the Cash Book shows a different figure. The difference of RM10 arises from a credit transfer from a debtor. The Cash Book has a balance of RM________.

• 970 (Dr)

• 970 (Cr)

• 950 (Dr)

• 950 (Cr)

A cheque received from a customer is dishonoured. Which of the following statement is ture?

• (Dr) Cash Book; (Cr) Acc Receivable

• (Dr) Cash Book; (Cr) Acc Payable

• (Dr) Acc Receivable; (Cr) Cash Book

• (Dr)Acc Payable; (Cr) Cash Book

Deposited cheque dishonoured by bank for the following reasons, except for ___________.

• insufficient funds

• irregularities on cheques

• cheques are not more than 6 months old

• no signature / signature differs from specimen signature