Quiz on Cash

and Bank
Reconciliatio
n
BA 114.1 THUV-2

#1
A

bank overdraft is classified as a

current liability and should not
be offset against bank accounts
with debit balances.

#2
Compensating

cash.

balance is part of

#3
Bank reconciliation is necessary
only for a demand deposit or
checking account.

#4
Bank service charges are seen as
credit memos in a bank
statement.

#5
Bank balance + DIT + Debit
Memos Outstanding checks
Credit memos = Book balance

#6
A proof of cash is a reconciliation
of the receipts and disbursements
for the current period.

#7
Outstanding checks of the
current month increased the
book disbursements for the
current month but have no effect
on the bank disbursements for
the current month.

#8
A bank reconciliation is a monthly
report of the bank to the
depositor.

#9
NSF checks appear twice in a
bank statement as a debit and
also a credit entry.

#10
In the adjusted balance method,
debit memos are always
deducted from the book balance.