• 1. 
    A Bank Reconciliation Statement is:

  • A part of cash book
  • A part of pass book
  • A statement prepared by bank
  • A statement prepared by a customer
  • 2. 
    A pass book is a copy of

  • A customer’s account in the bank’s books
  • Cash book relating to bank column
  • Cash book relating to cash column
  • Firm’s receipts and payments
  • 3. 
    A bank reconciliation statement is prepared with the balance of:

  • Cash book
  • Pass book
  • Either cash book or pass book
  • Neither cash book nor pass book
  • 4. 
    Unfavourable bank balances means:

  • Credit balance in the cash book
  • debit balance in the pass book
  • Debit balance in the cash book
  • Favourable balance in the cash book
  • 5. 
    The main purpose of preparing a bank reconciliation statement is?

  • To know the bank balance
  • To know the balance of bank statement
  • To correct the cash book
  • To identify causes of difference between cash book and bank statement
  • 6. 
    In cash book, the favourable balance indicates

  • Credit Balance
  • Debit Balance
  • Bank Overdraft
  • Adjusted Balance
  • 7. 
    On the bank statement, cash deposited by the company is known as

  • Credit
  • Debit
  • Liability
  • Expenses
  • 8. 
    Bank reconciliation statement compares a bank statement with _________

  • Cash payment journal
  • Cash receipt journal
  • Financial statements
  • Cashbook
  • 9. 
    What is “Deposit in transit” in bank reconciliation?

  • Added to Bank Balance
  • Subtracted From Bank Balance
  • Subtracted From the Cash Book Balance
  • Added to Cashbook Balance
  • 10. 
    ‘NSF’ marked in cheque sent back by the bank indicates

  • Cheque has been forged
  • A bank couldn’t verify the identity
  • No sufficient money
  • A cheque cannot be cashed because it’s illegal
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