Bank Reconciliation Statement

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

• Debit

• Expenses

• Liabilities

• Credit

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 debit entry in the bank statement.

• True

• False

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

Which of the following is already recorded in the Cash at Bank account but not in the Bank Statement?

• Bank charges

• Dishonoured cheque

• Uncredited cheque

• Direct deposit

What to be recorded for updating cash book? (more than 1 answer)

• Uncredited amount

• Bank interest

• Bank error

• Standing order

• Bank charge

What to be recorded in a bank reconciliation? (more than 1 answer)

• add uncredited amount

• less uncredited amount

• add unpresented cheque

• less unpresented cheque

The following are the reasons for dissimilarity between balances in the bank statement and the cash book, except

• direct debit

• credit transfer

• cheque cleared

• dishonoured cheque

In preparing a bank reconciliation statement, which of the following items will not be included in updating the cash book?

• Interest charges

• Unpresented cheque

• Bank charges

• Standing order

A bank reconciliation statement is a statement that is

• drawn up by the bank to verify the cash book.

• sent by the bank when the account is overdrawn.

• drawn up by the business to verify the cash book balance with the bank statement balance.

• sent by the bank when the business has made an error.