QUARTER 2 SUMMATIVE 1

Multiple Choice: Choose the letter of the best answer for each item. Write your answers on a
separate piece of paper.

1. Which of the following is an integral part of cash management and control.

A. Cash and check B. Bank statement

C. Bank reconciliation D. None of the above

2. Which of the following is a mistake made by the company?

A. the bank records an incorrect amount

B. entering an amount that does not belong to the company's bank statement
C. omitting an amount from a company's bank statement
D. entering a transaction that does not belong to the account

3. These are checks already issued for payments by the company but not yet presented by the
payee to the bank for payment.

A. NSF checks B. outstanding checks

C. deposit in transit D. not given

4. The bank gives interest to the account at the end of the month. What will be the action for
this?

A. add to bank balance B. add to book balance

C. deduct to book balance D. deduct to bank balance

5. Which of the following reconciling items requires an adjusting entry?

A. bank charges B. interest income

C. debit memo D. all of these

6. Bank reconciliation involves a series of steps to arrive at the correct balances of cash. This
means bank reconciliation is________.

A. a science B. an art
C. a strategy D. a process

7. Bank reconciliation helps in the identification of _________ in

the accounting records of the company or the bank.

A. fraud B. value

C. errors D. balances

8. Debit memo was communicated to the company. What should be done?

 A. add it to book balance B. add it to bank balance
C. deduct it from book balance D. deduct it from bank balance

9. Its main purpose is to see if there are any differences between the balances of the bank and the
book.

A. bank financial statement B. company financial statement

C. bank reconciliation statement D. none of the above

10. These are checks issued by customers which have no sufficient funds available in the bank.

A. deposit in transit B. NSF checks

C. outstanding checks D. A&C

Written in the table are various reconciling items. Analyze and determine its effect on either the Bank balance or
the Book balance. On your answer sheet, copy the table, and write plus (+) if it is an addition or minus (-) if it is a
deduction either under the Bank or the Book column.
PROJECT – PREPARING DEPOSIT/WITHDRAWALS SLIPS, CHECKS
SAMPLE BANK RECONCILIATION
 WRITTEN OUTPUT

Written below are five situations concerning cash transactions. Read each situation,
identify what reconciling item is involved and analyze its effect on either the Book or
Bank balance. Write the reconciling item under column A and its corresponding effect
under column B. Copy the format on a separate piece of paper for your answer.