Bank Reconciliation Quiz
12 multiple-choice questions with answers and explanations · 4 easy, 6 medium, 2 hard
Deposits in transit, outstanding cheques, bank charges, direct debits and errors: reconciling the cash book to the bank statement.
- 1Bank Reconciliation — Outstanding ChecksIn a bank reconciliation, outstanding checks are:easy
- 2Why Your Bank "Credits" Your DepositA bank statement shows a customer's deposit as a CREDIT because:easy
- 3Bank Reconciliation: Why Is It Prepared?A bank reconciliation statement is prepared:easy
- 4Bank Reconciliation: What Is a Deposit in Transit?In a bank reconciliation, a deposit in transit (uncredited lodgement) is a deposit that has been:easy
- 5Bank Reconciliation — Adjusted Book BalanceThe cash ledger shows $8,000. The bank statement reveals: a note of $1,200 collected by the bank on the company's behalf, an NSF customer check of $450, and bank service charges of $50. The adjusted (correct) cash balance is:medium
- 6An NSF Check in a Bank ReconciliationA customer's check for $600, deposited by the company, was returned by the bank marked 'NSF' (non-sufficient funds). In the bank reconciliation, this is:medium
- 7Bank Reconciliation: Which Item Requires an Entry in the Books?Which of the following items found during a bank reconciliation requires an entry in the company’s cash book?medium
- 8Bank Reconciliation: Calculating the Adjusted Bank BalanceThe bank statement shows a balance of $9,400. Deposits in transit are $1,300 and outstanding cheques are $2,100. What is the adjusted (true) cash balance?medium
- 9Bank Reconciliation: A Direct Debit Not Yet RecordedThe bank statement shows a $250 direct debit for insurance that has not been entered in the cash book. To bring the cash book up to date, the business should:medium
- 10Bank Reconciliation: A Credit Transfer from a CustomerA customer paid $800 directly into the company’s bank account. The receipt appears on the bank statement but not in the cash book. The business should:medium
- 11Bank Reconciliation: From the Cash Book Balance to the Bank Statement BalanceThe corrected cash book shows a debit balance of $5,200. Unpresented cheques total $1,450 and uncredited lodgements total $900. What balance does the bank statement show?hard
- 12Bank Reconciliation: An Error Made by the BankThe bank has wrongly charged another customer’s $300 cheque to the company’s account. In the bank reconciliation, the company should:hard