ACCOUNTING FOR CASH

In cash book, the favourable balance indicates

• Credit Balance

• Debit Balance

• Bank Overdraft

• Adjusted Balance

On the bank statement, cash deposited by the company is known as

• Credit

• Debit

• Liability

• Expense

Bank reconciliation statement compares a bank statement with _________

• Cash Payment Journal

• Cash Receipt Journal

• Financial Statements

• Cashbook

What is “Deposit in transit” in bank reconciliation?

• Added to Bank Balance

• Subtracted from Bank Balance

• Subtracted from the Cash Book Balance

• Added to Cash Book Balance

‘NSF’ marked in cheque sent back by the bank indicates

• Cheque has been forged

• A bank couldn’t verify the identity

• No sufficient money

• A cheque cannot be cashed because it’s illegal

Bank reconciliation description is composed of

• Bank Accountant

• Business Manager

• Business Accountant

• Controller of the bank

An unadjusted balance in cash book is because of the result of which error?

• Deposit in transit

• The omission of Bank charges

• Outstanding cheques

• Unpresented cheques

Unpresented cheques also referred to as

• Bounced cheques

• Outstanding cheques

• Uncredited cheques

• Uncollected cheques

What type of cheques is that which is issued by a firm but not deposited to the bank

• Uncredited cheques

• Outstanding cheques

• Uncollected cheques

• Bounced cheques

Outstanding checks:

• Add to Book Balance

• Deduct from Book Balance

• Add to Bank Balance

• Deduct from Bank Balance