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20 questions
A bank reconciliation statement is
Part of the cash book
Part of Bank account
Part of financial statement
None of the above
If the Bank Statement balance does not agree with the bank balance of the Cash Book, then _________.
the Cash Book should be regarded as the correct record of transactions
the Bank Statement should be regarded as the correct record of transactions
a Bank Reconciliation Statement should be prepared
the difference could be either a current asset or current liability
A cash deposit made by business appears on the bank statement as _______ balance.
Debit
Credit
Expenses
Liabilities
A bank overdraft will appear as a __________balance in Bank Statement.
debit
credit
Whenever money is deposited by the business, a credit entry in its records corresponds to a debit entry in the bank's records.
True
False
If the final balance of the bank statement is credit, it indicates that the business owes the bank money.
True
False
If the bank charges the business fees, the bank makes a credit entry in the bank statement.
True
False
If the final balance in the bank statement is RM 3,500 Dr, unpresented cheques equal RM 200 and outstanding deposits total RM 400, the final balance in the business's bank account is:
RM 3,700 Dr
RM 3,700 Cr
RM 3,300 Cr
RM 3,300 Dr
If the final balance in the bank statement is RM 3,900 Cr, unpresented cheques equal RM 500 and outstanding deposits total RM 900, the final balance in the business's bank account is:
RM 4,300 Dr
RM 4,300 Cr
RM 3,500 Cr
RM 3,500 Dr
On 30 April 2022, you received the bank statement for March and found that a RM 12,000 cheque, which was drawn on 10 April 2022 and paid to creditor, had been dishonoured by the bank.
Cash Book, Dr Cash Cr Creditor
Cash Book, Dr Creditor Cr Cash
Bank Rec. item, Add to bank balance
Bank Rec. item, less from cash book bal.
A payment of RM 6,500 by cheque was wrongly recorded on the debit side of the cash book.
Cash book,
Dr Cash Cr payment overstated
Cash book,
Dr payment understated Cr Cash
Bank Rec. item, Add to bank balance
Bank Rec. item, less from cash book bal.
What occurs when a customer has withdrawn more funds than were actually in the banking account resulting in the customer owing money to the bank?
Credit balance
Overdraft
Drawings
Transactions
What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?
Stale cheque
Dishonoured cheque
Sad cheque
Dubious cheque
Which of the following is already recorded in the Cash at Bank account but not in the Bank Statement?
Bank charges
Dishonoured cheque
Uncredited cheque
Credit transfer
A cheque which has been drawn but not yet shown on bank statement refers to which of the following items?
Credit Transfer
Dishonoured Cheque
Uncredited Deposit
Unpresented Cheque
Which of the following is not recorded in the Cash at Bank account but already recorded in the Bank Statement?
Unpresented cheque
Direct debit
Uncredited cheque
Why cash book and bank statement doesn't provide the same value?
record different transaction
some transactions are recorded by one side only
Received cheque 150 recorded by the business, what correction need to be made?
cash book +150
cash book -150
bank statement +150
bank statement -150
Paid interest 150 recorded by the bank, what correction need to be made?
cash book +150
cash book -150
bank statement +150
bank statement -150
The Bank Statement shows a credit balance of RM960, but the Cash Book shows a different figure. The difference of RM10 arises from a credit transfer from a debtor. The Cash Book has a balance of RM________.
970 (Dr)
970 (Cr)
950 (Dr)
950 (Cr)
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