Bank Reconciliation MCQS

We have covered Bank Reconciliation Statement in great detail. Now, it is the time to do some quizzes in the form of MCQS (Multiple Choice Questions).

1.Debit balance in cash book is a:

unfavourable balance

favourable balance

2.When preparing bank reconciliation, Cheque in transit is added to:

cash book balance

Bank statement balance

3.Bank reconciliation statement is a:

ledger account

comparison report between actual and standard

comparison of cash book and bank statement

4.How often should the bank reconciliation statement be prepared?

Monthly,

Yearly

Daily

Weekly

5.The main objective of bank reconciliation statement is to identify:

the find cash book bank balance,

to find bank statement balance,

to find out the causes of differences between bank balance as per cash book and as per bank statement.

6.A statement to find out the differences between bank statement and cash book is called:

balance sheet

bank reconciliation statement

profit and loss account.

7.Bank statement is prepared by:

company itself

bank

debtors

creditors

8.Cheque issued but not presented in bank are:

added in balance as per cash book

added in bank statement balance

substracted from bank statement balance

substracted from cash book balance.

9.What is NSF in bank reconciliation terminology:

not standing fund

not sufficeint fund

not sufficient figure

10.Bank reconciliation statement is prepared by the:

auditor

accountant of the company

Company secretary

None of the above.

11.Bank reconciliation statement is prepared in accordance with:

IFRS

US GAAP

None of the above

12.When cheque deposited into bank got rejected due to non availability of funds is called:

NSF

NOF

SFM

13.Bank charges charged by the bank needs to be:

added in cash book balance

substracted from cash book balance

added in bank statement balance

substracted from bank statement balance.

14.Report which is issued to customer from time to time and on-demand is called:

Balance sheet

Profit & loss account

Bank statement

15. Cheque returned by bank due to insufficient fund is called:

Honoured cheque

Dishounoured cheque

None of the above. 

Answers: favourable balance, bank balance, comparison of cash book and bank statement,daily, to find out the causes of differences between bank balance as per cash book and as per bank statement, bank reconciliation statement, company itself, substracted from bank statement balance, not sufficeint fund, accountant of the company, None of the above, NSF, substracted from cash book balance, Bank statement, Dishounoured cheque).