CBSE Class 11 Accountancy Bank Reconciliation Statement MCQs Set E

Question: The Balance of the reconciliation of the cash ledger book reconcile with the cash in the register is an example of
a) Other rules
b) Separate internal confirmation
c) Establishment of duty
d) Segregation of responsibilities
Answer: b

Question: Which of these below-given points is not an internal management method for cash?
a) Cash is deposited daily
b) There should be limited access to cash
c) Keep the amount of cash on hand to a minimum
d) Payments are made with cash
Answer: d

Question: Bank Reconciliation Statement is prepared by matching
a) entries in Pass Book with entries in bank columns of Cash Book.
b) entries in Pass Book with entries in cash columns of Cash Book.
c) entries in Pass Book with entries in bank columns and cash columns of Cash Book.
d) None of the options.
Answer: d

Question: Credit Balance in the Cash Book means:
a) Overdraft as per Pass Book
b) Credit balance as per Pass Book
c) Debit balance in the Cash Book
d) Neither of the options
Answer: a

Question: Debit balance in the Cash Book is equivalent to
a) Overdraft as per Pass Book
b) Credit balance as per Pass Book
c) Overdraft as per Cash Book
d) None of the options
Answer: b

Question: Which of the following will not require adjustment in the Cash Book balance?
a) Cheque issued but not presented for payment
b) Cheque deposited but not cleared
c) Cheque wrongly credited by bank
d) All of the options
Answer: c

Question: When the balance as per Cash Book is the starting point, direct deposit by customer is
a) Added
b) Subtracted
c) Not required to be adjusted
d) Neither of the two
Answer: a

Question: The credit balance as per Cash Book is Rs. 1,500. Cheques for Rs.400 were deposited but were not collected. The cheques issued but not presented were Rs.100, Rs.125 and Rs.50. Balance as per Pass Book will be:
a) Rs.1,100 Debit
b) Rs.1,625 Debit
c) Rs.2,175 Credit
d) Rs.1,625 Credit
Answer: b

Question: A bank reconciliation statement is prepared with the balance of ______.
a) Cash book
b) Pass book
c) Either cash book or pass book
d) Neither cash book nor pass book
Answer: c

Question: Favorable balance means _______.
a) Credit balance in the cash book
b) Credit balance in the bank statement
c) Debit balance in the cash book
d) both Credit balance in the bank statement and Debit balance in the cash book
Answer: c

Question: A bank reconciliation statement is prepared to ascertain the causes of differences between
a) The balance as shown by the cash column of Cash Book with the balance of the Pass Book
b) The balance as shown by the bank column of Cash Book with the balance of the Pass Book
c) The balance as shown by the cash column of the Cash Book with that shown by its bank column
d) The balance as shown by the Cheque Book and Pass Book.
Answer: b

Question: Customer’s copy of the account provided by the bank to the depositor to record deposits and withdrawals is called:
a) Sales Book
b) Cash Book
c) Pass Book
d) Purchases Book
Answer: c

Question: Which of the below-given items on a bank statement reconciliation would need an adjusting entry on the company's books?
a) An error by the bank
b) Outstanding checks
c) A bank service charge
d) A deposit in transit
Answer: c

Question: Which of the following items is not a reason for the difference between bank balance as per cash book and pass book?
a) Dishonored cheques
b) Cheques deposited but not yet cleared
c) Credit sales
d) Cheques issued but not yet presented for payment
Answer: c

Question: When a cheque is returned by the bank showing some technical reason is known as _______.
a) Honor of the cheque
b) Balance of account
c) Dishonor of the cheque
d) None of the options
Answer: c

Question: A bank reconciliation statement is mainly prepared for
a) Reconcile the cash balance of the cash book
b) Reconcile the difference between the bank balance shown by the cash book and bank passbook
c) Both Reconcile the cash balance of the cash book and Reconcile the difference between the bank balance shown by the cash book and bank passbook
d) None of the options
Answer: b

Question: Payment done by the account holder through issuing a cheque is entered in
a) the Pass Book at the time of issuing the cheque
b) the Pass Book at the time of presenting the cheque to the bank for payment
c) the Cash Book at the time of issuing the cheque
d) Both the Pass Book at the time of presenting the cheque to the bank for payment and the Cash Book at the time of issuing the cheque
Answer: d

Question: The cheque which is issued to the creditor but is not presented for payment is called _____.
a) Uncredited cheque
b) Outstanding cheque
c) Omitted cheque
c) Dishonored cheque
Answer: b

Question: The Balance of the replenished petty cash fund contains a credit to
a) Petty Cash
b) Cash
c) Freight-In
d) Postage Expense
Answer: b

Question: If the Cash amount as per the passbook is the beginning point, then the rate of the bank interest will be permitted?
a) Deducted
b) Added
c) No effect
d) None of options
Answer: a