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WorksheetsChap 7: Bank reconciliation Quiz 1
Total questions: 18
Worksheet time: 9mins
Credit balance in Cash at bank account refers to ___.
Bank overdraft
Cash at bank
Bank loan
From bank perspective, Balance in bank account represent a ____ of the bank.
liability
asset
owner's equity
Debit balance in bank statement is __.
a positive bank balance.
a bank overdraft.
Bai Trading is a ___ of the business.
Trade receivable
Trade payable
Other payable
14th Jan balance in the Bank Statement of 1,500 Cr represents_____ of $1,500.
Cash at bank
Bank overdraft
Differences in bank statement and Cash at Bank account, are due to ____ of recording transactions and result of ____ (either by business or bank).
errors, timing
timing , errors
timing difference, carelessness
Items already recorded in the cash at bank account but not in the bank statement:
Cheque not yet presented
Direct payment
Direct deposit
Cheque not yet credited
Bank charges and bank interest expense
Items not recorded in the cash at bank account but already recorded in the bank statement
Cheque not yet presented
Direct payment
Direct deposit
Dishonoured cheque
Bank charges and bank interest expense
Purposes of preparation of bank reconciliation statement:
To serve as a deterrence against fraud
To identify any errors in the cash at bank account or the bank statement
To reconcile the discrepancies between balances and transactions recorded in the cash at bank
account and bank statement
To facilitate the preparation of financial reports
The credit balance as per Bank Statement of $5,130 is obtained from the _____ balance in the Bank Statement for July 20X2.
first
last
The bank balance of $204 Dr on Sep 30 20X2 represents ____ of $204.
Cash at bank
Bank overdraft
Adjustment items affecting ___ or ____ will affect profit.
Asset, liability
Income, liabilitiy
Income, expense
Equity, liability
Causes of dishonoured cheque are:
The cheque is bounced.
The information on the cheque is inconsistent.
The payer has insufficient funds in the bank or the bank account is closed.
The cheque is post-dated.
The cheque has expired.
A ___ discount is given to encourage early payment whereas a ___ discount is given to encourage the customers to buy in larger quantities.
Cash, trade
Trade , Cash
A ___ discount is deducted off the invoiced amount whereas a ___ discount is deducted off
the list price.
Cash, trade
Trade , Cash
A ___ discount is given at the point
of purchase or sale of goods whereas ____ discount is given at the point of payment
trade , cash
cash , trade
A ___ discount is recorded in the ledger account whereas a ___ discount is not recorded in the ledger account.
cash , trade
trade, cash
A cash discount provided by the business to a trade receivable is known as ____.
Discount allowed
Discount received
