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WorksheetsBANK RECON
Total questions: 20
Worksheet time: 10mins
These are deposits made but not yet credited by the bank to the depositor’s bank account.
Credit memos (CM)
Debit memos (DM)
Outstanding checks (OC)
Deposits in transit (DIT)
These are deductions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)
These are additions made by the bank to the depositor’s bank account but not yet recorded by the depositor.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)
These are checks drawn and released to payees but are not yet encashed with the bank.
a. Credit memos (CM)
b. Debit memos (DM)
c. Outstanding checks (OC)
d. Deposits in transit (DIT)
Which of the following is added to the cash balance per books when preparing a bank reconciliation statement?
a. Credit memo (CM)
b. Debit memo (DM)
c. Outstanding check (OC)
d. Deposit in transit (DIT)
Which of the following is added to the cash balance per bank statement when preparing a bank reconciliation statement?
a. Credit memo (CM)
b. Debit memo (DM_
c. Outstanding check (OC)
d. Deposit in transit (DIT)
Which of the following represents a debit memo?
a. Collections made by the bank on behalf of the depositor.
b. Interest income earned by the deposit.
c. Proceeds from loan directly credited or added by the bank to the depositor’s account.
d. Interest expense on a loan that is directly deducted from the depositor’s account.
Which of the following is not a debit memo?
a. Bank service charges
b. No sufficient funds checks (NSF)
c. Automatic debits representing payments of bills by the bank on behalf of the depositor
d. Direct deposits of customers to the depositor’s account
A company's Cash account has a balance of P851 as of October 31. The bank statement for this account reports a balance of P1,430 as of October 31. There are outstanding checks totaling P840 and a deposit in transit of P60. The bank statement shows interest earned of P19, service charges of P30, a customer's returned check of P100, and a check printing fee of P90. The reconciled Cash balance that should be reported on the company’s balance sheet as of October 31 is P (a) .
What are the Book Reconciling Items?
Credit Memos
Debit Memos
Errors
All of the above
Which of the following is included in the Bank Reconciling Items?
Notes Receivable
Bank Fee
Deposit in Transit
NSF
Under this method, the Book Balance and the Bank Balance are brought to a correct cash balance that must appear on the Balance Sheet.
Adjusted Balance Method
Book to Bank Method
Bank to Book Method
None of the above
What is the impact of the following item when reconciling?
Outstanding deposit of P1,200
Added to the checkbook balance
Deducted from the checkbook balance
Added to the bank statement balance
Deducted from the bank statement balance
Outstanding checks will (a) the bank balance. Outstanding deposits will (b) the bank balance. A service charge will (c) the bank balance.
How often should a business complete a bank reconciliation?
Every day
Every month
Every quarter
Every year
When a customer writes a check and it can't be cashed because there are not enough funds in the account- -this is a
Stop Payment Order
NSF Check
Post Dated Check
Voided Check
A bank service charge is an example of unrecorded bank credit.
True
False
A cash deposit made by business appears on the bank statement as _______ balance.
Debit
Credit
Expenses
Liabilities
From a bank's point of view, deposits received from customers are treated as which of the following accounting elements?
Income
Expenses
Assets
Liabilities
When preparing a bank reconciliation, credit memos are added to the balance per bank statement to get an adjusted cash balance.
TRUE
FALSE
