Chapter 8 Bank Reconciliation (Exp)

A credit bank balance indicates an _________.

Which of the following item(s) would cause the cash at bank balance and bank statement balance to differ?

• Standing order

• Dishonoured cheque

• Receipt

• Bank charges

• Deposit in transit

Which of the following item(s) would cause the cash at bank balance to be greater than the bank statement balance?

• Cheques not yet presented

• Dishonoured cheque

• Bank charges

• Deposit in transit

Which of the following are reason(s) why a cheque is labelled "Refer to Drawer"?

• Cheque is post-dated

• Payer's bank account has insufficient funds

• Signature on cheque does not tally with bank's record

• Cheque is expired

The bank informed the business that a cheque deposited earlier was dishonoured.

Which set of double entry is correct?

• Dr Trade receivable

  Cr Cash at bank

• Dr Cash at bank

  Cr Trade receivable

• Dr Trade payable

  Cr Cash at bank

• Dr Cash at bank

  Cr Trade payable

Which of the following are types of internal control over cash?

• Bank statement

• Bank reconciliation

• Authorisation

• Custody of cash

• Segregation of duties

What is the effect of not adjusting for a dishonoured cheque?

Select ALL possible options.

• Cash at bank overstated

• Cash at bank understated

• Profit overstated

• Profit understated