Bank Reconciliation Quiz

What is the purpose of bank reconciliation?

• To reconcile the bank account balance in the books of the business to the bank account balance in the books of the bank

• To reconcile the bank account balance in the books of the business to the cash account balance in the books of the business

• To reconcile the bank account balance in the books of the business to the accounts payable balance in the books of the business

• To reconcile the bank account balance in the books of the business to the accounts receivable balance in the books of the business

What is the first step in the bank reconciliation procedure?

• Compare the DEBITS on the bank statement with bank column of the CBP

• Adjust the cash book i.e CBR and CBP

• Compare the CREDITS on the bank statement with bank column of the CBR or debit side of bank general ledger

• Compile the bank reconciliation statement

Which of the following is an example of an adjusting difference in bank reconciliation?

• A discrepancy on a transaction recorded by both the bank and the business

• Deposit recorded in the CBR from the 27th day onwards will only be reflected on the following bank statement

• Direct deposit

• Interest on current account

What action is required for an item that appears in the CBR but not on the bank's statement credits?

• Adjust or amend the CBP

• Record in bank reconciliation – subtract/less outstanding cheque

• Adjust or amend the CBR

• Record in the Bank reconciliation statement (Credit or add)

What is the final step in the bank reconciliation procedure?

• Adjustment done in the cash book i.e CBR and CBP the cash book are totalled, then posted to Bank account in the general ledger

• Compile the bank reconciliation statement

• Compare the DEBITS on the bank statement with bank column of the CBP

• Compare the CREDITS on the bank statement with bank column of the CBR or debit side of bank general ledger

Which of the following is an example of a timing difference in bank reconciliation?

• Direct deposit

• Interest on current account

• A cheque is recorded in the CBP but not debited in the bank statement

• Bank charges

What action is required for an item that appears in the bank statement debits but not in the CBP?

• Record in bank reconciliation – subtract/less outstanding cheque

• Adjust or amend the CBP

• Record in the Bank reconciliation statement (debit or less)

• Adjust or amend the CBR

What is the purpose of adjusting an error made by the bank in the bank reconciliation statement?

• Adjust it in the business books

• Record in the Bank reconciliation statement (Credit or add)

• Adjust it in the bank reconciliation

• Adjust or amend the CBR

What is the action required for an outstanding deposit in the bank reconciliation?

• Record in the Bank reconciliation statement (Credit or add)

• Adjust or amend the CBR

• Adjust or amend the CBP

• Record in bank reconciliation – subtract/less outstanding cheque

What is the action required for bank overstates a deposit on the bank statement?

• Record in bank reconciliation – subtract/less outstanding cheque

• Adjust or amend the CBP

• Adjust or amend the CBR

• Record in the Bank reconciliation statement (Credit or add)