Bank reconciliation - Theory

A favourable bank balance is indicated as a .... on the bank statement.

• 0

• Debit

• Credit

• None of the options

An EFT payment by a debtor must only be recorded in the Cash receipts journal

when the amount of the payment appears on the bank statement.

• True

• False

• Can't decide

• Sometimes true

A credit for interest on the bank statement must be added in the Cash payments

journal.

• True

• False

• I cannot decide

• Somewhat true

Costs levied by the bank for EFT payments do not form part of bank charges.

• True

• False

• I cannot decide

• Somewhat true

The Bank reconciliation statement is an internal control activity to prevent fraud and

identify errors.

• True

• False

• Somewhat true

• I cannot decide