Quick Check 2

Cash and Cash Equivalent is not mandatory to reconcile since this is directly connect to Bank Statement.

• True

• False

Which account can contain Negative balance on assets side?

• Bad Debts account

• Contra AR account

• Both

• Non-of them

High Risk Accounts are Exempted from reconciliation on Monthly Basis and Mandatory only on quarterly basis.

• True

• False

You are an Accountant performing reconciliation for Prepaid Expense account closing balance USD 120k as on month-end 31st March 20. Evidence provided was an expense schedule for the Year FY2021.

What should be Closing balance and Action point balance as of 31st March

• Closing balance USD120k, report In-correct USD30k

• Closing balance USD 120k, report Unknow USD 30k

• Closing balance USD 90k, report In-correct USD 30k

• Closing balance USD 90k, report Unknow USD 30k

New Bad debt policy restrict creation of provision for age items below 365 days

• True

• False

Accruals can be maintained up to one year without reasonable estimation or commitment to settle

• True

• False

AR Subledger to Ledger account contains Negative balance this could be due to?

• Unapplied invoice

• Credit note provided to customer

• Customer over payment

• All the above

It is mandatory to report unknow or Incorrect balances?

• True

• False