Accounting

If the Bank statement balance does not agree with the Book, then ______________

• The cash book should be regarded as the correct record of transactions

• The bank statement should be regarded as the correct record of transactions

• A bank reconciliation statement should be prepared

• The difference could be either a current asset or current liability

What is the meaning of a check dishonor?

What is the main benefit of preparing a bank reconciliation statement?

• If there is an error in the transaction kept in the cash book only

• If there is an error in the transaction kept in the cash book and bank statement

• If there is an error in the book of account

• If there is an error in the transaction kept in bank statement only

What are the reasons for the differences between the balance of the bank statement and the bank column of the cash book?

A bank reconciliation statement is prepared by____________

Bank reconciliation statement is prepare to reconcile

• The balance of cash book with Profit and Loss account of the firm

• The balance of pass book with profit and loss account of the firm

• The balance of bank column of cash book and the balance in pass book

• The balance of cash column of cash book

A __________ is a copy of the bank's customer's account in the book of the bank

These are cheques already issued for payments by the company but not yet presented by the payee to the bank for payment.

• Deposit in transit

• Outstanding cheques

• NSF cheques

• Not given

Why is bank statement essential in preparing a bank reconciliation statement?

What is the main objective to prepare the bank reconciliation statement?