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Bank Reconciliation Statement Quiz

Class XI
Accountancy
Bank Reconciliation Statement
13 questions
HARD

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Preview questions

1. What is the primary purpose of preparing a Bank Reconciliation Statement?

To calculate interest on bank deposits · To ensure accuracy of cash balance · To determine bank charges · To analyze bank transactions

2. Which of the following items would NOT be included in a Bank Reconciliation Statement?

Outstanding cheques · Deposits in transit · Bank charges · Cash sales

3. What is the effect of outstanding cheques on the bank balance?

Increase the bank balance · Decrease the bank balance · No effect on the bank balance · Depends on the cheque amount

4. When preparing a Bank Reconciliation Statement, what does 'Deposits in Transit' refer to?

Deposits made but not yet recorded by the bank · Deposits recorded by the bank but not yet made · Deposits that have bounced · Deposits that are under investigation

5. Which of the following adjustments is made when the bank balance is lower than the cash book balance?

Add outstanding cheques · Subtract deposits in transit · Add bank charges · Subtract interest earned