Accounting Quizees

Financial Accounting Multiple Choice Questions (MCQS) Page 8. The Following Financial Accounting Mcqs are Collected from different Past papers and from Accounting Mcqs Bank. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for  Cost Accountant.  

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Bank reconciliation statement MCQs

	1)
	Favourable balance of cash book implies that
	A)  Credit balance of cash book
	B)  Debit balance of cash book
	C)  Bank overdraft
	D)  Adjusted balance of cash book
	2)
	A cash deposit made by business appears on the bank statement as _______ balance
	A)  Debit
	B)  Credit
	C)  Expenses
	D)  Liability
	3)
	Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business)
	A)  Cash receipt journal
	B)  Cash payment journal
	C)  Cash book
	D)  Financial statements
	4)
	A check returned by bank marked "NSF" means that
	A)  Bank can't verify your identity
	B)  There are not sufficient funds in your account
	C)  Check has been forged
	D)  Check can't be cashed being illegal
	5)
	In the Bank reconciliation statement "Deposit in transit" is usually
	A)  Subtracted from bank balance
	B)  Added to bank balance
	C)  Added to Cash book balance
	D)  Subtracted from cash book balance
	6)
	Bank reconciliation statement is prepared by
	A)  Accountant of the business
	B)  Manager of the business
	C)  Controller of the bank
	D)  Accountant of the bank
	7)
	Which of the following error results in unadjusted cash book balance?
	A)  Outstanding checks
	B)  Unpresented checks
	C)  Deposit in transit
	D)  Omission of Bank charges
	8)
	Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book
	A)  Bank charges will be debited in cash book
	B)  Bank charges will be added to cash book balance
	C)  Bank charges will be credited in cash book
	D)  Bank charges need no adjustment in cash book
	9)
	Unpresented checks also referred as
	A)  Uncollected checks
	B)  Uncredited checks
	C)  Outstanding checks
	D)  Bounced checks
	10)
	________ are checks that are issued by the business but not yet presented to bank
	A)  Uncollected checks
	B)  Uncredited checks
	C)  Outstanding checks
	D)  Bounced checks
	11)
	_________ Checks that are presented to bank but not yet credited by the bank
	A)  Unpresented checks
	B)  Uncredited checks
	C)  Outstanding checks
	D)  Bounced checks
	12)
	Uncollected checks also referred as
	A)  Unpresented checks
	B)  Uncredited checks
	C)  Outstanding checks
	D)  Bounced checks
	13)
	Favourable balance of bank statement implies that
	A)  Credit balance
	B)  Debit balance
	C)  Bank overdraft
	D)  Adjusted balance
	14)
	Standing orders are ________
	A)  Credited in the cash book
	B)  Debited in the cash book
	C)  Entered in the bank statement
	D)  Entered in the petty cash balance
	15)
	A company was entered in hire purchase agreement and had to pay $1000 per month.Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book
	A)  $1000 will be added to cash book balance
	B)  $2000 will be deducted from cash book balance
	C)  $3000 will be added to cash book balance
	D)  $3000 will be subtracted from cash book balance
	16)
	$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book
	A)  $5000 will be credited
	B)  $5000 will be debited
	C)  $10,000 will be credited
	D)  $10,000 will be debited
	17)
	Bank sent debit advice of $500 to company being interest on overdraft. It wasn't entered in cash book. Identify the correct adjustment in cash book
	A)  $500 will be debited
	B)  $500 will be credited
	C)  Non-adjustable
	D)  $1000 will be subtracted
	18)
	In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book
	A)  Adjusted
	B)  Unadjusted
	C)  Understated
	D)  Overstated
	19)
	Balance as per cash book(adjusted)=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement
	A)  $2000
	B)  Zero
	C)  $3000
	D)  $2500
	20)
	A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?
	A)  $2000 will be debited in cash book
	B)  $2000 will be credited in cash book
	C)  $4000 will be debited in cash book
	D)  $4000 will be credited in the cash book  ANSWERS. 1 B 2 B 3 C 4 B 5 B 6 A 7 A 8 C 9 C 10 C 11 B 12 B 13 A 14 A 15 D 16 A 17 B 18 A 19 A 20 B