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ACCOUNTING FOR CASH

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

In cash book, the favourable balance indicates

a)

Credit Balance

b)

Debit Balance

c)

Bank Overdraft

d)

Adjusted Balance

2.

On the bank statement, cash deposited by the company is known as

a)

Credit

b)

Debit

c)

Liability

d)

Expense

3.

Bank reconciliation statement compares a bank statement with _________

a)

Cash Payment Journal

b)

Cash Receipt Journal

c)

Financial Statements

d)

Cashbook

4.

What is “Deposit in transit” in bank reconciliation?

a)

Added to Bank Balance

b)

Subtracted from Bank Balance

c)

Subtracted from the Cash Book Balance

d)

Added to Cash Book Balance

5.

‘NSF’ marked in cheque sent back by the bank indicates

a)

Cheque has been forged

b)

A bank couldn’t verify the identity

c)

No sufficient money

d)

A cheque cannot be cashed because it’s illegal

6.

Bank reconciliation description is composed of

a)

Bank Accountant

b)

Business Manager

c)

Business Accountant

d)

Controller of the bank

7.

An unadjusted balance in cash book is because of the result of which error?

a)

Deposit in transit

b)

The omission of Bank charges

c)

Outstanding cheques

d)

Unpresented cheques

8.

Unpresented cheques also referred to as

a)

Bounced cheques

b)

Outstanding cheques

c)

Uncredited cheques

d)

Uncollected cheques

9.

What type of cheques is that which is issued by a firm but not deposited to the bank

a)

Uncredited cheques

b)

Outstanding cheques

c)

Uncollected cheques

d)

Bounced cheques

10.

Outstanding checks:

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance

11.

Bank service charge:

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance

12.

Deposit in transit:

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance

13.

Bank inadvertently charged your bank account for another company's bank fees.

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance

14.

A company wrote a check for RM76 and it cleared the bank for RM76. However, the company recorded the check in its Cash account as RM67. How is the difference of RM9 handled on the bank reconciliation?

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance

15.

A company had a receipt of RM989 and correctly prepared its bank deposit slip for RM989. However, the company recorded the receipt in its Cash account as RM998. How is the difference of RM9 handled on the bank reconciliation?

a)

Add to Book Balance

b)

Deduct from Book Balance

c)

Add to Bank Balance

d)

Deduct from Bank Balance