BANK RECONCILIATION STATEMENT-MCQ

Q.1 The main purpose of preparing a bank reconciliation statement is?

(a)To know the bank balance

(b) To know the balance of bank statement
(c) To correct the cash book
(d) To identify causes of difference between cash book and bank statement

Q.2 Bank reconciliation statement is?

a) Part of bank statement

(b) Part of the cash book
(c) A separate statement
(d) A sub-division of journal

Q.3 Unpresented cheques are also known as?

(a) Outstanding cheques

(b) Uncleared cheques
(c) Outstation cheques
(d) Both b & c

Q.4 Favorable balance means?

(a) Credit balance in the cash book

(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) both b and c

Q.5 Unfavorable balance means?

(a) Credit balance in the cash book

(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) Debit balance in petty cash book

Q.6 A bank reconciliation statement is prepared by?

(a) Banker
(b) Accountant of the business
(c) Auditors
(d) Registrar
Q.7 The cheque which is deposited into bank but not cleared at the end of a
particular year is called?

(a) Uncredited cheque

(b) Unpresented cheque
(c) Omitted cheque
(d) Dishonored cheque

Q.8 In cash book bank charges are recorded in?

(a) Credit side

(b) Debit side
(c) both a & b
(d) None of them

Q.9 Credit balance as per pass book is?

(a) Unfavorable balance

(b) Favorable balance
(c) Both a & b
(d) None

Q.10 If any amount is directly deposited into the bank then?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show double balance
(d) Bank book will show double balance

Q 11. In cash book, the favourable balance indicates

(a) Credit Balance

(b) Debit Balance
(c) Bank Overdraft
(d) Adjusted Balance

Q.12 Bank reconciliation statement compares a bank statement with _________

(a) Cash payment journal

(b) Cash receipt journal
(c) Financial statements
(d) Cashbook
Q.13 A bank reconciliation statement is statement prepared to reconcile:

(a) Trial Balance

(b) Profit as per books of account with the profit as per income-tax return
(c) Cash balance as per cash book with bank balance as per pass book
(d) Bank balance as per cash book with bank balance as per bank pass book

Q.14 A bank reconciliation is prepared by the

(a) Bank (b) Creditors (c) Business (d) Supplier

Q.15 Debit balance as per pass book means

(a) Bank Overdraft (b) Debit balance in pass book (c) Cash balance with bank (d) None of these

Q.16 Which of these statements is true about a bank pass book.

(a) Pass book contains a copy of bank column of the customer cash book
(b) Pass book is a copy of customers account in bank book
(c) Pass book contains a copy of cash column of customer of cash book
(d) Pass book contains a copy of customers current account in cash book

Q.17 Unfavorable balance as per bank pass book means which of these

(a) Bank Overdraft

(b) Debit balance in pass book
(c) Debit balance in cash book
(d) (a & b)

Q.18 If any amount is directly deducted into the bank then?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.19 If any amount is directly collected by the bank then?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance
Q.20 If a cheque that is deposited into the bank, is not yet cleared?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.21 If a cheque that is issued into the bank, is not presented for payment?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.22 If a cheque that is deposited into the bank, is cleared?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.23 If cash is withdrawn from bank?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.24 If debit side of Cashbook is undercast, it means?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance

Q.25 If credit side of Pass book is overcast, it means?

(a) Cash book will show less balance & bank book will show more
(b) Cash book will show more balance & bank book will show less
(c) Cash book will show same balance as per passbook
(d) Bank book will show double balance