MCQs on "Bank Reconciliation Statement": Find the multiple choice questions on "Bank Reconciliation Statement", frequently asked for all competitive examinations.
Here are a few MCQs on Bank Reconciliation Statement for your better understanding of the topic.
Q:1.
The Cash Book debit balance is equivalent to?
- A. Credit Balance as per passbook
- B. Overdraft as per Cash Book
- C. Overdraft as per Pass Book
- D. None of the above
Explanation: When your cash book balance is debited, the passbook balance is a credit balance. As a result, both books’ balances will be favourable. Otherwise, it is unfavorable while it’s opposite to each other
Q:2.
How is the Bank Reconciliation Statement prepared?
- A. By matching entries in the passbook with entries in the bank and cash column of the cash book
- B. By matching the entries in the passbook with entries in the bank column of the cash book
- C. By matching the entries in the passbook with entries in the cash column of the cash book
- D. None of the above
Explanation: So, the Back reconciliation statement is made by matching the entries in the passbook with entries in the bank column of the cash book
Q:3.
When the Cash amount as per the Cash Book is the beginning point, explicit deposits by the bank holder are known as?
- A. Subtracted
- B. Added
- C. Not need to be adjusted
- D. Neither of the two
Explanation: As you know, the passbook balance will increase due to the direct amount by the customer in the bank. The balance of the cash book will decrease with the same amount.)
Q:4.
The Bank Reconciliation Statement is the Part of?
- A. Double-entry system
- B. Not a Part of the Double-entry system
- C. Bank Statement
- D. None of all of these
Explanation: You know very well that you are reconciling the balances through the Bank Reconciliation Statement. The Bank Reconciliation Statement is simple, and it is not a part of the Double-entry system.
Q:5.
Who is preparing the Bank Reconciliation Statement?
- A. Debtor
- B. Creditor
- C. Account Holder
- D. Bank
Explanation: The balances are simply reconciled by the accountant and account holder to match the cash book and passbook
Q:6.
Which amount of the following does not need to be adjusted into the cash book balance?
- A. Cheques mistakenly credited by the bank
- B. Cheques deposited but not cleared
- C. cheques issued but not showing
- D. All of these
Explanation: Because the bank credited our account mistakenly for this amount, you do not need it. So you do not add it to the cash book balance for the adjustment.
Q:7.
If the Account holder deposits the cash in the bank, then it is known as?
- A. Expense
- B. Liability
- C. Credit
- D. Debit
Explanation: The more courage you deposit in the bank, the bank’s liability will increase, and your bank balance will increase. So the cash book balance will be credited, and it’s known as a credit balance.
Q:8.
A Bank Reconciliation Statement is made up using the ……… from following which?
- A. The bank column of the Cashbook and the Bank Statement
- B. The Cash column of the Cashbook and Bank statement
- C. Bank column of the cash book and cash column of the Cashbook
- D. None of all of the above
Explanation: The Bank Reconciliation Statement is prepared with the help of the Bank Statement and the bank column of the Cashbook
Q:9.
The customer account is ………….when he withdraws the amount from the bank?
- A. Debited
- B. No effect
- C. Credited
- D. None of these
Explanation: As you know, when cash is withdrawn from your bank account, money will reduce from your bank. So, it is known as a debited amount from the bank account
Q:10.
What is the “deposit in transit” treatment in a bank reconciliation?
- A. Recorded in books
- B. Recorded in banks
- C. Subtracted from the cash book balance
- D. Subtracted from the Passbook balance
Explanation: It is recorded in the cash book but not in the Passbook. So, your cash book balance has been increased, but it’s not recorded in Passbook. So, to reconcile the balance of both books, kindly record the balance in the Passbook.)
