Bank Reconciliation

1. It is a report that is prepared for the purpose of bringing the balances of cash per records and per bank statement into agreement.

• Bank statement

• Check Disbursement Voucher

• Bank reconciliation

• Bank deposit slip

2. These are deposits made but not yet credited by the bank to the depositor’s bank account.

• Credit memos (CM)

• Debit memos (DM)

• Outstanding checks (OC)

• Deposits in transit (DIT)

3. These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.

• a. Credit memos (CM)

• b. Debit memos (DM)

• c. Outstanding checks (OC)

• d. Deposits in transit (DIT)

4. These are additions made by the bank to the depositor’s bank account but not yet recorded by the depositor.

• a. Credit memos (CM)

• b. Debit memos (DM)

• c. Outstanding checks (OC)

• d. Deposits in transit (DIT)

5. These are checks drawn and released to payees but are not yet encashed with the bank.

• a. Credit memos (CM)

• b. Debit memos (DM)

• c. Outstanding checks (OC)

• d. Deposits in transit (DIT)

6. Which of the following is added to the cash balance per books when preparing a bank reconciliation statement?

• a. Credit memo (CM)

• b. Debit memo (DM)

• c. Outstanding check (OC)

• d. Deposit in transit (DIT)

7. Which of the following is added to the cash balance per bank statement when preparing a bank reconciliation statement?

• a. Credit memo (CM)

• b. Debit memo (DM_

• c. Outstanding check (OC)

• d. Deposit in transit (DIT)

8. Which of the following represents a debit memo?

• a. Collections made by the bank on behalf of the depositor.

• b. Interest income earned by the deposit.

• c. Proceeds from loan directly credited or added by the bank to the depositor’s account.

• d. Interest expense on a loan that is directly deducted from the depositor’s account.

9. Which of the following is not a debit memo?

• a. Bank service charges

• b. No sufficient funds checks (NSF)

• c. Automatic debits representing payments of bills by the bank on behalf of the depositor

• d. Direct deposits of customers to the depositor’s account

10. As an internal control, bank reconciliation statements are usually prepared

• a. daily

• b. monthly

• c. annually every year-end

• d. whenever the accountant feels like it