1)

Favourable balance of cash book implies that

A) Credit balance of cash book

B) Debit balance of cash book

C) Bank overdraft

D) Adjusted balance of cash book

2)

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

A) Debit

B) Credit

C) Expenses

D) Liability

3)

Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________
(prepared by business)

A) Cash receipt journal

B) Cash payment journal

C) Cash book

D) Financial statements

4)

A check returned by bank marked "NSF" means that

A) Bank can't verify your identity

B) There are not sufficient funds in your account

C) Check has been forged

D) Check can't be cashed being illegal

5)

In the Bank reconciliation statement "Deposit in transit" is usually

A) Subtracted from bank balance

B) Added to bank balance

C) Added to Cash book balance

D) Subtracted from cash book balance

6)

Bank reconciliation statement is prepared by

A) Accountant of the business

B) Manager of the business

C) Controller of the bank

D) Accountant of the bank

7)

Which of the following error results in unadjusted cash book balance?

A) Outstanding checks

B) Unpresented checks

C) Deposit in transit

D) Omission of Bank charges

8)

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash
book

A) Bank charges will be debited in cash book

B) Bank charges will be added to cash book balance

C) Bank charges will be credited in cash book

D) Bank charges need no adjustment in cash book

9)

Unpresented checks also referred as

A) Uncollected checks

B) Uncredited checks

C) Outstanding checks
D) Bounced checks

10)

________ are checks that are issued by the business but not yet presented to bank

A) Uncollected checks

B) Uncredited checks

C) Outstanding checks

D) Bounced checks

11)

_________ Checks that are presented to bank but not yet credited by the bank

A) Unpresented checks

B) Uncredited checks

C) Outstanding checks

D) Bounced checks

12)

Uncollected checks also referred as

A) Unpresented checks

B) Uncredited checks

C) Outstanding checks

D) Bounced checks

13)

Favourable balance of bank statement implies that

A) Credit balance

B) Debit balance

C) Bank overdraft

D) Adjusted balance

14)

Standing orders are ________

A) Credited in the cash book

B) Debited in the cash book

C) Entered in the bank statement

D) Entered in the petty cash balance

15)

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

A) $1000 will be added to cash book balance

B) $2000 will be deducted from cash book balance

C) $3000 will be added to cash book balance

D) $3000 will be subtracted from cash book balance

16)

$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash
book

A) $5000 will be credited

B) $5000 will be debited

C) $10,000 will be credited

D) $10,000 will be debited

17)

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

A) $500 will be debited

B) $500 will be credited

C) Non-adjustable

D) $1000 will be subtracted

18)

In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash
book

A) Adjusted
B) Unadjusted

C) Understated

D) Overstated

19)

Balance as per cash book(adjusted)=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in

transit=$500. Compute the balance as per bank statement

A) $2000

B) Zero

C) $3000

D) $2500

20)

A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the
gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash
book?

A) $2000 will be debited in cash book

B) $2000 will be credited in cash book RIGHT ANSWER!!!

C) $4000 will be debited in cash book

D) $4000 will be credited in the cash book

1. The main purpose of preparing a bank reconciliation statement is?

(a) To know the bank balance

(b) To know the balance of bank statement

(c) To correct the cash book

(d) To identify causes of difference between cash book and bank statement

2. Bank reconciliation statement is?

(a) Part of bank statement

(b) Part of the cash book

(c) A separate statement

(d) a sub-division of journal

3. Uncollected checks are also known as?

(a) Outstanding checks

(b) Uncleared checks

(c) Outstation checks

(d) Both b & c

4. Favorable balance means?

(a) Credit balance in the cash book

(b) Credit balance in Bank statement

(c) Debit balance in cash book

(d) both b and c

5. Unfavorable balance means?

(a) Credit balance in the cash book

(b) Credit balance in Bank statement

(c) Debit balance in cash book

(d) Debit balance in petty cash book

6. When check is not paid by the bank, it is called?

(a) Honored

(b) Endorsed

(c) Dishonored

(d) a & b

7. A bank reconciliation statement is prepared by?

(a) Banker

(b) Accountant of the business

(c) Auditors

(d) Registrar

8. Bank reconciliation is not a?

(a) Reconcile records

(b) Memorandum statement

(c) Ledger account

(d) Procedure to provide cash book adjustments

9. The balance on the debit side of the bank column of cash book indicates?
(a) The total amount has drawn from the bank

(b) Cash at bank

(c) The total amount overdraft in the bank

(d) None of above

10. Bank statement also called?

(a) Pass book

(b) Cash book

(c) Credit book

(d) Debit book

1. 1. Question

1 points

A Bank Reconciliation Statement is prepared with the help of:

o 1. Cash Book

o 2. Pass Book

o 3. Either Cash Book or Pass Book

o 4. Neither Cash Book or Pass Book

Correct

2. 2. Question

1 points

A Bank Reconciliation Statement is prepared with the help of:

o 1. Cash Book

o 2. Pass Book

o 3. Either Cash Book or Pass Book

o 4. Neither Cash Book or Pass Book

Correct

3. 3. Question

1 points

A Bank reconciliation statement is :

o 1. A part of Cash Book

o 2. A part of Pass Book

o 3. A statement prepared by the bank

o 4. A statement prepared by a customer

Correct

4. 4. Question

1 points
 A Pass Book is a copy of:

o 1. A Customer\'s account in the Bank\'s Books

o 2. Cash Book relating to bank column

o 3. Cash Book relating to cash column

o 4. Firm\'s receipts and payments

Correct

5. 5. Question

1 points

A Bank Reconcilitation Statement is prepared to know the causes for the difference between:

o 1. The balance as per cash column of Cash Book and the Pass Book

o 2. The balance as per bank column of Cash Book and the Pass Book

o 3. The balance as per bank column of Cash Book and the balance as per cash column of Cash Book

o 4. Neither of the above

Incorrect

6. 6. Question

1 points

Debit balance in the Pass Book means:

o 1. Favourable balance in the Cash Book

o 2. Unfavourable balance in the Cash Book

o 3. Favourable balance in the Pass Book

o 4. Unfavourable balance in the Pass Book

Incorrect

7. 7. Question

1 points

When balance as per Pass Book is the starting point, Insurance Premium paid by bank is :

o 1. Added
 o 2. Subtracted

o 3. Not required to be adjusted

o 4. Neither of these

Incorrect

8. 8. Question

1 points

Credit Balance in the Cash Book means:

o 1. Overdraft as per Pass Book

o 2. Credit balance as per Pass Book

o 3. Debit balance in the Cash Book

o 4. Neither of these

Incorrect

9. 9. Question

1 points

When the balance as per Cash Book is the starting point, direct deposit by customer is :

o 1. Added

o 2. Subtracted

o 3. Not required to be adjusted

o 4. Neither of the two

Incorrect
Bank Reconciliation StatementQ.1

Credit balance as per Cash Book - Rs. 10,000Bank charged interest - Rs. 150Cheques issued but not presented for payment - Rs. 2,500Overdraft /
Balance as per Pass Book will be:
1. Rs. 7,6502. Rs. 12,3503. Rs. 12,6504. None of these
Correct Answer:
1
Q.2

When overdraft as per Cash Book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded inCash Book will be :
1. Added by Rs. 5002. Deducted by Rs. 5003. Added by Rs. 1,0004. Deducted by Rs. 1,000
Correct Answer:
2
Q.3

Overdraft as per Cash Book means:

1. Credit balance in the Cash Book 2. Credit balances in the bank column of the Cash Book 3. Decrease in Liability4. None of the above
Correct Answer:
2
Q.4

Debit balance as per Cash Book of ABC Enterprises as on 31.3.2006 is Rs.1,500. Cheques deposited but not clearedamounts to Rs.1000 and
cheques issued but not presented of Rs.1500. The bank allowed interest amounting to Rs.50 and collected dividend Rs.500 on behalf of ABC
Enterprises. Balance as per pass book should be
1. 2,5502. 4503. 1,8504. 1,650
Correct Answer:
1
Q.4

Bank Balance as per Cash Book is Rs.12,000 taking into account cheques worth Rs20,000 deposited in bank. Of
thecheques deposited one cheque of Rs. 5,000 was yet to be cleared and another cheque for Rs, 4,000 was returned unpaid. The balance as per
Pass Book is –
1. Rs.35002. Rs.3,0003. Rs.5,0004. Rs.4,000
Correct Answer:
2
Q.5

Cheques received but deposited on the next day are recorded in:
1. Cash column of the cash book 2. Bank column of the cash book 3. Both of these4. None of these
Correct Answ 1