Bank Reconciliation Quiz

Which of the following adjustments would be added to the bank balance while preparing a Bank Reconciliation Statement starting from cash book?

• Bank charges

• Deposits in transit

• Outstanding cheques

• None of the above

If a cheque deposit made by the company does not appear on the bank statement at the end of the period, it should be:

• No impact

• Deducted from the bank balance

• Added to the book balance

• Deducted from the book balance

In a Bank Reconciliation Statement, a cheque issued by the company and recorded in its books but not yet presented to the bank for payment is called:

• Outstanding deposit

• Deposits in transit

• Cheque issued but not presented/ cheque outstanding

• Bank charge

Bank reconciliation is prepared to reconcile the differences between:

• Bank balance and cash balance

• Bank balance and book balance

• Cash balance and book balance

• Bank balance and trial balance

If the bank statement shows a bank charge not recorded in the company's books, this would require what adjustment if starting point is from cash book

• Adding to the bank balance

• Deducting from the bank balance

• No impact

• Add to the book balance

When preparing a Bank Reconciliation Statement, a standing instruction transfer from the bank for a loan payment would:

• Increase the bank balance

• Decrease the bank balance

• Increase the book balance

• No impact

Undercasting of Cashbook is an example of

• Timing difference

• Transaction difference

• Error

• None of the above

If there is an error in recording a deposit in the company's books, resulting in an overstatement of the book balance, this error would:

• Increase the bank balance

• Decrease the bank balance

• Increase the book balance

• Decrease the book balance

Which of the following items would be deducted from the bank balance while preparing a Bank Reconciliation Statement starting from cash book balance?

• Bank interest earned

• Deposits in transit

• Outstanding cheques

• Bank service charges

When the balance as per Cash Book is the starting point, direct deposits by customers are:

•     Added

    

• Subtracted

•    Not required to be adjusted.

• None of the above