Financial Accounting ICOM Part 01 Top 500 + MCQS Download Pdf Chapter No 09

written by Assad Javaid | April 29, 2021

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Top Financial Accounting ICOM Subject Mcqs Pdf Download
01 Financial Accounting ICOM Mcqs Chapter 01 02 Financial Accounting ICOM Mcqs Chapter 02
03 Financial Accounting ICOM Mcqs Chapter 03 04 Financial Accounting ICOM Mcqs Chapter 04
05 Financial Accounting ICOM Chapter 05 06 Financial Accounting ICOM Chapter 06
07 Financial Accounting ICOM Mcqs Chapter 07 08 Financial Accounting ICOM Mcqs Chapter 08
09 Financial Accounting ICOM Mcqs Chapter 09 10 Financial Accounting ICOM Mcqs Chapter 10
11 Financial Accounting ICOM Mcqs Chapter 11 12 Financial Accounting ICOM Mcqs Chapter 12
13 Financial Accounting ICOM Mcqs Chapter 13 14 Financial Accounting ICOM Mcqs Chapter 14
15 Financial Accounting ICOM Mcqs Chapter 15 16 Financial Accounting ICOM Mcqs Chapter 16
Top 500+ New Financial Accounting ICOM MCQs with Answers | Download PDF

Chapter No 9

Bank Reconciliation Statement

Encircle the most appropriate answer from the following :

1. Bank reconciliation statement is prepared by

  1. Banker
  2. Customer’s accountant
  3. Auditors
  4. Manager

2. Unfavorable balances mean

  1. Credit balance in the pass book
  2. Credit balance in the cash book
  3. Debit balance in pass book
  4. Both 1&2

3. Cheques issued to a creditor but not presented for payment are called

  1. Uncredited cheques
  2. Unpresented cheques
  3. Uncollected cheques
  4. Dishonored cheques

4. The debit balances of cash and bank accounts in the cash book are called

  1. Income
  2. Expenses
  3. Liabilities
  4. Assets

5. The credit balance of bank account in cash book is called

  1. Expense
  2. Asset
  3. Income
  4. Liabilities

6. Pass book is prepared by

  1. Debtor
  2. Creditor
  3. Banker
  4. Customer

7. A customer cheque returned dishonored

  1. Return outward book
  2. Cash book
  3. Return inward
  4. Bill receivable book

8. If receipt side of the cash book under-casted by Rs. 300, when overdraft as per bank statement in the starting point

  1. Rs. 300 will be deducted
  2. Rs. 600 will be deducted
  3. Rs. 300 will be added
  4. Rs. 600 will be added

9. A copy of the customer’s account in the banks ledger is called

  1. Deposit statement
  2. Bank statement
  3. Balance statement
  4. Customer statement

10. A statement which is used to reconcile the bank balance as per cash book with the balance as per pass book is called

  1. Bank statement
  2. Financial statement
  3. Income statement
  4. Bank reconciliation statement

11. In cash book, the favourable balance indicates

  1. Credit Balance
  2. Bank Overdraft
  3. Debit Balance
  4. Adjusted Balance

12. On the bank statement, cash deposited by the company is known as

  1. Credit
  2. Liability
  3. Debit
  4. Expenses

13. Bank reconciliation statement compares a bank statement with

  1. Cash payment journal
  2. Financial statements
  3. Cash receipt journal
  4. Cashbook

14. What is “Deposit in transit” in bank reconciliation?

  1. Added to Bank Balance
  2. Subtracted from Bank Balance
  3. Subtracted from the Cash Book Balance
  4. Added to Cash Book Balance

15. *NSF marked in cheque sent back by the bank indicates

  1. Cheque has been forged
  2. A bank couldn’t verify the identity
  3. No sufficient money
  4.  A cheque cannot be cashed because it’s illegal

16. Bank reconciliation description is composed of

  1. Bank Accountant
  2. Business Manager
  3. Business accountant
  4. Controller of the bank

17. An unadjusted balance in a cash book is because of the result of which error?

  1. Deposit in transit
  2. Outstanding checks
  3. The omission of Bank charges
  4. Unpresented checks

18. Unpresented checks also referred to a

  1. Bounced checks
  2. Uncredited checks
  3. Outstanding checks
  4. Uncollected checks

19. In the cash book, an amount of 5,000 was not recorded. Name the correct cash book adjustment

  1. It will be credited cash book
  2. It will be debited in cash book
  3. No adjustment needed in the cash book
  4. Charges will be added to the cash book balance

20. What type of cheques is that which is issued by a firm but not deposited to the bank

  1. Uncredited cheques
  2. Uncollected cheques
  3. Outstanding cheques
  4. Bounced cheques

21. The main purpose of preparing a bank reconciliation statement is?

  1. To know the bank balance
  2. To know the balance of bank statement
  3. To correct the cash book
  4. To identify causes of difference between cash book and bank statement

22. Bank reconciliation statement is? Part of bank statement

  1.  A separate statement
  2.  Part of the cash book
  3. a subdivision of journal
  4. PART of bank statement

23. Uncollected checks are also known as?

  1. Outstanding checks
  2. Outstation checks
  3. Uncleared checks
  4. Both 1 & 2

24. When a check is not paid by the bank, it is called?

  1. Honour
  2. Dishonored
  3. Endorsed
  4. Both 1&2

25. Bank reconciliation is not a? Reconcile records

  1. Memorandum statement
  2. Ledger account
  3. Procedure to provide cash book adjustments
  4. Reconcile records

26. The balance on the debit side of the bank column of the cash book indicates?

  1. The total amount has drawn from the bank
  2. Cash at bank
  3. The total amount overdraft in the bank
  4. None of above

27. Bank statement also called?

  1. Pass book
  2. Credit book
  3. Cash book
  4. Debit book

28. When a bank statement shows debit balance, it means?

  1. Overdraft balance as per cash book
  2. Unfavorable balance as per cash book
  3. Unfavorable as per bank
  4. None of the above

29. The check which is deposited into the bank but not cleared at the end of a particular year is called?

  1. Uncredited check
  2. Omitted check
  3. Unpresented check
  4. Dishonored check

30. When dealing with Bank reconciliation statement while using missing method the credit side of a cash book corresponds to?

  1. Debit side of cash book
  2. Debit side of Bank statement
  3. Credit side of Bank statement
  4. None of them

31. In cash book bank charges recorded?

  1. Credit side
  2. both 1&3
  3. Debit side
  4. None of them

32. Credit balance as per pass book is?

  1. Unfavorable balance
  2. Both 1 & 3
  3. Favorable balance
  4. None

33. When cash is deposited into bank then the following account would be debited in the company accounts?

  1. Cash account
  2. Bank account
  3. Overdraft account
  4. None

34. Which of the following would not affect bank reconciliation?

  1. Dishonored cheque
  2. Bank interest
  3. Discount received
  4. Check not presented

35. An amount of Rs. 1,000 is debited twice in the bank statement. When overdraft as per the cash book is the starting point?

  1. Rs. 1,000 will be deducted
  2. Rs. 2,000 will be deducted
  3. Rs. 1,000 will be added
  4. Rs 2,000 will be added

36. Which one of the following is not missing from the cash book?

  1. Mistakes in cash book
  2. Outstation check
  3. Bank charges debited in a bank statement?
  4. Interest credited in bank statement

37. If any amount is directly deposited into the bank, then?

  1. Cash book will show less balance & bank book will show more
  2. Cash book will show more balance & bank book will show less
  3. Cash book will show double balance
  4. Bank book will show double balance

38. Rs. 5000 deposited in a bank account was entered twice in the cash book. Identify the correct adjustment in the cash book.

  1. Rs. 5000 will be credited
  2. Rs. 5000 will be debited
  3. Rs. 10,000 will be credited
  4. Rs. 10,000 will be debited

39. A company entered a hire purchase agreement and had to pay Rs. 1000 per month. Three payments were made via bank account but no entry was found in the cash book. Identify the correct adjustment in cash book

  1. Rs. 1000 will be added to cash book balance
  2. Rs. 2000 will be deducted from cash book balance
  3. Rs. 3000 will be added to cash book balance
  4. Rs. 3000 will be subtracted from cash book balance

40. Balance as per cash book (adjusted =Rs. 1000, Unpresented checks=Rs. 2000, Uncredited checks=Rs. 500, Deposit in transit=Rs. 500. Compute the balance as per bank statement.

  1. Rs. 2000
  2. Rs. 3000
  3. Zero
  4. Rs. 2500

41. Which of the following errors results in an unadjusted cash book balance?

  1. Outstanding checks
  2. Deposit in transit
  3. Unpresented checks
  4. Omission of Bank charges

42. In bank reconciliation statement the amount of outstanding checks is added to balance of cash book.

  1. Adjusted
  2. Understated
  3. Unadjusted
  4. Overstated

43. Bank sent debit advice of Rs. 500 to the company being interested in overdraft. It wasn’t entered in a cash book. Identify the correct adjustment in the cash book.

  1. Rs. 500 will be debited
  2. Rs. 500 will be credited
  3. Rs. 1000 will be subtracted
  4. Non adjustable

44. checks that are issued by the business but not yet presented to bank

  1. Uncollected checks
  2. Outstanding checks
  3. Uncredited checks
  4. Bounced checks

45. Standing orders are Credited in the cash book

  1. Debited in the cash book
  2. Entered in the bank
  3. Entered in the petty cash balance
  4. Credited in the cash book

46. A discount of Rs. 2000 was given to a supplier on his prompt repayment of debt

but the cashier entered the gross amount in a cash book. What should be the

adjustment in cash to work out the correct balance of the cash book?

  1. Rs. 2000 will be debited in cash book
  2. Rs. 2000 will be credited in cash book
  3. Rs. 4000 will be debited in cash book
  4. Rs. 4000 will be credited in the cash book

47. In the Bank reconciliation statement “Deposit in transit” is usually:

  1. Subtracted from bank balance
  2. Added to bank balance
  3. Added to Cash book balance
  4. Subtracted from cash book balance

48. Bank charges amounting to Rs. 5000 were not entered in the cash book. Identify

the correct adjustment in the cash book?

  1. Bank charges will be debited in cash book
  2. Bank charges will be added to cash book balance
  3. Bank charges will be credited in cash book
  4. Bank charges need no adjustment in cash book

49. A cash deposit made by business appears on the bank statement as balance?

  1. Debit
  2. Expenses
  3. Credit
  4. Liability

50. Customer’s copy of the account provided by the bank to the depositor to record deposits and withdrawals is called:

  1. Sales Book
  2. Pass Book
  3. Cash Book
  4. Purchases book

51. Bank Statement is kept by:

  1. Bank
  2. Auditors
  3. Depositor/customers
  4. None of these

52. Bank reconciliation statement is a:

  1. Part of bank statement
  2. Part of journal
  3. Memorandum statement
  4. Ledger Account

53. A copy of customer’s account in the bank’s ledger is called:

  1. Financial statement
  2. Bank Statement
  3. Balance statement
  4. Deposit statement

54. Bank statement is prepa the books of:

  1. Bank
  2. depositor/Customer
  3. Guarantor
  4. None of these

55. Cash Book & Statement show Balance

  1. Opposite
  2. Credit
  3. Debit
  4. None of the given options

56. When bank balance increases, it is debited in… and credited in….

  1. Pass Book; Cash Book
  2. Cash Book; Pass Book
  3. None of the given options

57. Any decrease in the bank balance is recorded on… side of Cash Book and in… Column of Pass Book.

  1. Debit; Credit
  2. None of the given options
  3. Credit; Debit

58. Withdrawals are recorded in the column of the Pass Book.

  1. Debit
  2. Credit

59. Bank Reconciliation statement provides mechanism of over Cash

  1. External Control
  2. Internal Control
  3. Maximum Control
  4. None of the given options

60. Amount of unpresented cheques is in Bank Reconciliation Statement.

  1. Credited
  2. None of the given options
  3. Debited

61. All amounts credited by the bank, but not recorded in the Cash Book are…. BRS

  1. Credited
  2. None of the given options
  3. Debited

62. Amount of any items due to which Cash Book shows more balance that Pass Book balance, are…. in BRS and vice versa.

  1. Credited
  2. None of the given options
  3. Debited

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