MCQs on Bank Reconciliation Statement
Multiple Choice Questions
Basic Concepts
A bank reconciliation statement is prepared to:
a) Correct errors in the cash book.
b) Reconcile the cash book balance with the bank statement balance. ✓
c) Ascertain the exact cash in hand.
d) Prepare the bank column of the cash book.
An overdraft as per cash book means:
a) Credit balance in the cash book. ✓
b) Debit balance in the cash book.
c) Credit balance in the bank statement.
d) Debit balance in the bank statement.
Cheques issued but not presented for payment are:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book. ✓
c) Added to the bank balance as per bank statement.
d) Deducted from the bank balance as per bank statement.
Bank charges are:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book.
c) Deducted from the bank balance as per bank statement. ✓
d) Added to the bank balance as per bank statement.
Direct deposit by a customer into the bank account is:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book.
c) Added to the bank balance as per bank statement. ✓
d) Deducted from the bank balance as per bank statement.
Adjustments
Cheques deposited but not credited by the bank are:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book.
c) Added to the bank balance as per bank statement. ✓
d) Deducted from the bank balance as per bank statement.
Interest credited by the bank is:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book.
c) Added to the bank balance as per bank statement. ✓
d) Deducted from the bank balance as per bank statement.
Bank charges not recorded in the cash book are:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book.
c) Deducted from the bank balance as per bank statement. ✓
d) Added to the bank balance as per bank statement.
Dishonored cheques are:
a) Added to the bank balance as per cash book.
b) Deducted from the bank balance as per cash book. ✓
c) Added to the bank balance as per bank statement.
d) Deducted from the bank balance as per bank statement.
Errors in the cash book are:
a) Corrected in the bank reconciliation statement. ✓
b) Not considered in the bank reconciliation statement.
c) Corrected in the bank statement.
d) None of the above.
Reconciliation Process
A favorable bank balance means:
a) Overdraft as per cash book.
b) Overdraft as per bank statement.
c) Credit balance as per cash book. ✓
d) Credit balance as per bank statement.
An unfavorable bank balance means:
a) Overdraft as per cash book. ✓
b) Overdraft as per bank statement.
c) Credit balance as per cash book.
d) Credit balance as per bank statement.
The final balance of the bank reconciliation statement should agree with:
a) The cash book balance.
b) The bank statement balance. ✓
c) Both cash book and bank statement balances.
d) None of the above.
Bank reconciliation statement is prepared:
a) Daily.
b) Weekly.
c) Monthly. ✓
d) Annually.
The purpose of bank reconciliation is to:
a) Detect errors in the cash book.
b) Ascertain the correct bank balance. ✓
c) Prepare the bank column of the cash book.
d) All of the above.
