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ACCTG 26 Cash and Cash Equivalents, Bank Reconciliation

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

A bank service charge of P 25.

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

2.

The credit of P 275 on the bank statement for semiannual interest collected by the bank for the company on pledged bonds.

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

3.

The charge of P 122 for “NSF” check

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

4.

The checks outstanding as of June 31, totaling P 5,020

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

5.

The P 625 deposit not shown in the bank statement.

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

6.

The P 4,500 proceeds of a bank loan(reflected on both the books and the bank statement

a)

Deduct it from the bank statement balance

b)

Add it to the bank statement balance

c)

Exclude it from the reconciliation

d)

Add it to the checkbook balance

e)

Deduct from the checkbook value.

7.

Customer’s check returned by bank marked NSF.

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

8.

Proceeds from a customer’s note, principal amount P 900 collected by bank collection fee of P 6 charged by bank

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

9.

Check No. 121 had been entered in the accounts as P 2,230 but was deducted on the bank statement in the correct amount of P 2,320.

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

10.

The current bank statement shows a deduction of P 8.00 for a new checkbook

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

11.

A check book of an unauthorized person had been deducted from the account by the bank in error.

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

12.

Deposit of May 29 not recorded by the bank until June 2

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

13.

Outstanding checks totaled P 8,600

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

14.

A check for P 161 written by TC Corporation had been deducted on the bank statement of ETC Corporation

a)

Addition to cash balance per cash account

b)

Addition to cash balance per bank statement

c)

Deduction from cash balance per cash account

d)

Deduction from cash balance per bank statement

e)

Does not affect the reconciliation of cash balances

15.

Which of the following items should not be recorded in the cash account?

a)

Money Orders

b)

Certificates of Deposits

c)

Postage Stamps

d)

Ordinary checks