Bank Reconciliation Statement

A bank reconciliation statement is

• Part of the cash book

• Part of Bank account

• Part of financial statement

• None of the above

A deposit made by business appears on the bank statement as _______ balance.

• Debit

• Credit

• Expenses

• Liabilities

Whenever money is deposited by the business, the credit entry in its records corresponds to a debit entry in the bank's records.

• True

• False

If the bank charges the business fees, the bank makes a credit entry in the bank statement.

• True

• False

What occurs when a customer has withdrawn more funds than were actually in their bank account resulting in the customer owing money to the bank?

• Credit balance

• Overdraft

• Levies

• Transactions

Deposits made directly to the bank by customers who owe the business money are already entered in the business's Cash Book.

• True

• False

The type of transactions recorded in a Cash Book are:

• all sales of inventories on credit

• all outgoings of cash from the business

• all cash and cheques received from any source

• all purchases of inventories on credit

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

In order to perform a bank reconciliation you will need the cash book journal and which of the following?

• Bank Statement

• Chart of Accounts

• Accounts Payable

• Accounts Receivable

In the cash book, bank charges are recorded on the?

• Credit side

• Debit side

• Both A & B

• None of the above