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

• Debit

• Credit

• Expenses

• Liabilities

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

• True

• False

If the final balance of the bank statement is credit, it indicates that the business owes the bank money.

• True

• False

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

• True

• False

If the final balance in the bank statement is $3500 Dr, unpresented cheques equal $200 and outstanding deposits total $400, the final balance in the business's bank account is:

• $3700 Dr

• $3700 Cr

• $3300 Cr

• $3300 Dr

If the final balance in the bank statement is $3900 Cr, unpresented cheques equal $500 and outstanding deposits total $900, the final balance in the business's bank account is:

• $4300 Dr

• $4300 Cr

• $3500 Cr

• $3500 Dr

On 7 April 2016, you received the bank statement for March and found that a $12,000 cheque, which was drawn on 10 September 2015 and paid to creditor, had not been presented to the bank.

• Cash Book, Dr Cash Cr Creditor

• Cash Book, Dr Creditor Cr Cash

• Bank Rec. item, Add to bank balance

• Bank Rec. item, less from cash book bal.

What occurs when a customer has withdrawn more funds than were actually in the banking account resulting in the customer owing money to the bank?

• Credit balance

• Overdraft

• Levies

• Transactions

What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?

• Stale cheque

• Dishonoured cheque

• Sad cheque

• Dubious cheque