Bank Reconciliation Quiz

What is bank reconciliation?

• The process of creating a budget

• The process of comparing your check register to the bank statement

• The process of opening a new bank account

• The process of tracking only deposits

Which document is provided by the bank and shows all transactions for the month?

• Check register

• Deposit slip

• Bank statement

• Transaction record

What is an outstanding check?

• A check that has been cashed but not deposited

• A check that has been written but not yet cleared by the bank

• A check that has been lost

• A deposit that hasn’t posted yet

Why is it important to account for outstanding checks?

• They add to your available balance

• They reduce your available balance

• They don't affect your balance

• They create extra interest

Outstanding deposits are:

• Deposits made but not yet processed by the bank

• Withdrawals made but not yet posted

• Deposits processed by the bank but not recorded in your check register

• Fees charged by the bank

What is the first step in the bank reconciliation process?

• Review the bank statement

• Calculate the adjusted balance

• Contact the bank

• Update your check register

Which of the following might appear only on a bank statement and not in a check register?

• Outstanding check

• Bank fee

• Direct deposit

• Outstanding deposit

If there is an error in your check register, what should you do?

• Ignore it

• Contact your bank immediately

• Update the check register to reflect the correct amount

• Close your account

If your check register balance is $3,000 and you have $200 in outstanding deposits, what is your adjusted balance?

• $2,800

• $3,000

• $3,200

• $3,400

Which of the following might be a reason for a transaction appearing on the bank statement but not in the check register?

• The bank statement was mailed late

• The transaction was forgotten or unrecorded in the check register

• The bank made an error

• The check register is not important