Bank Reconciliation Quiz 1/7/24

What is the purpose of a bank reconciliation statement?

• To balance the bank statement and the cash account

• To calculate interest earned

• To track expenses only

• To reconcile payroll accounts

What are some reasons for an imbalance between the bank statement and the cash account?

• Items in the bank statement but not in the cash account

• Items in the cash account but not in the bank statement

• None of the above

• Both A and B

How many steps are involved in bank reconciliation?

• 4

• 3

• 2

• 1

Which of the following is an example of an adjustment to the cash account?

• Deduct: Bank charge

• Deduct: Sales revenue

• Add: Collections made by the bank

• Add: Unpresented cheques

What should the adjusted balances be after reconciliation?

• They should be negative

• They should be different

• They should be equal

• They should be positive

What is an example of an adjustment to the bank reconciliation?

• Deduct: Rent income

• Add: Payroll expenses

• Deduct: Utilities expense

• Add: Unrecorded deposits

What should be done with nonsufficient funds cheques in the reconciliation process?

• Add them to the cash balance

• Deduct them from the cash balance

• Record them as bank errors

• Ignore them

What is the purpose of reconciling unpresented cheques in the bank reconciliation?

• To increase the cash balance

• To decrease the cash balance

• To identify errors

• To calculate interest earned

What is the correct adjustment for a dishonoured cheque in the cash account?

• Add the cheque amount

• Deduct the bank charge

• Deduct the cheque amount

• Add the bank charge

What should be done with bank charges in the reconciliation process?

• Add them to the cash balance

• Deduct them from the cash balance

• Ignore them

• Record them as interest earned