What is the main purpose of a Bank Reconciliation Statement?

A Bank Reconciliation Statement is a record book of the transactions of a bank account. This statement helps the account holders to check and keep track of their funds and update the transaction record that they have made.

What are the rules of a Bank Reconciliation Statement?

Any debit balance in the cash book is referred to as the deposits of the business entity. Debit in cash book is equal to credit in passbook. Credit balance in cash book means unfavorable balance. Debit balance in cash book means favorable balance.

Why is the Bank Reconciliation Statement prepared?

A Bank Reconciliation Statement is prepared so that the difference between the undermentioned balances can be reconciled, the difference in the balance in the bank, and the cash balance.

What are the five types of a Bank Reconciliation?

There are five main types of account reconciliation: bank reconciliation, customer reconciliation, vendor reconciliation, inter-company reconciliation, and business-specific reconciliation.

What is Bank Reconciliation?

Bank Reconciliation is a process of verifying and balancing a company's book of record with the bank statement. The goal of bank reconciliation is to identify and correct any discrepancies so that the company's financial records are accurate.

Bank Reconciliation Statement MCQ Quiz With Answers

To test your knowledge of bank reconciliation statements, this multiple choice question (MCQs) quiz contains 28 questions covering key topics.

This quiz is helpful preparation for upcoming exams, job interviews, or work tasks. If you find any questions difficult, see the page on bank reconciliation statements.

Each MCQ has 4 options, and you will need to choose the correct response in each case.

1. The statement that explains the causes of the difference between the cash book and bank statement is called:

Bank Statement
Financial Statement
Income Statement
Bank Reconciliation Statement

2. The bank reconciliation statement is prepared by:

Bank
Customer's Accountant
Auditors
None of the above

3. The statement used to reconcile the bank balance as per the cash book and bank statement is called:

Financial Statement
Bank Reconciliation Statement
Bank Statement
Income Statement

4. The customer's copy of the account provided by the bank to the depositor to record deposits and withdrawals is called:

Sales Book
Cash Book
Pass Book
Purchases Book

5. Bank statements are kept by:

Banks
Auditors
Depositors/Customers
None of the above

6. Bank statements are prepared by:

Bankers
Customer's Accountant
Auditors
None of the above

7. Bank reconciliation statements are:

Parts of the bank statement
Memorandum statement
Part of the journal
Ledger account

8. A copy of the customer's account in the bank\'s ledger is called:

Financial Statement
Balance Statement
Bank Statement
Deposit Statement

9. Bank statements are prepared in the books of the:

Bank
Guarantor
Depositor/Customer
None of the above

10. Checks issued but not presented in the bank are called:

Unpresented cheques
Uncredited cheques
Uncollected cheques
Uncleared cheques

11. The bank reconciliation statement is prepared by the banker.

True
False

12. A debit balance in the pass book is an unfavorable balance.

True
False

13. A credit balance in the cash book is a favorable balance.

True
False

14. The bank balance, as per the bank statement, is shown in the balance sheet at the end of the year.

True
False

15. A bank reconciliation statement is prepared only at the end of the accounting year.

True
False

16. Only those items are recorded in the bank reconciliation statement that lead to a difference in the balance of the cash and pass books.

True
False

17. A bank conciliation statement can be started with a cash book balance only.

True
False

18. Two search causes of difference, debit side of cash book (bank column) is compared with the credit column of bank statement (and vice versa).

True
False

19. Items that are not ticked on the credit side of a cash book are "uncredited cheques.\"

True
False

20. Cash book and bank statement show _______ balance.

Credit
Debit
Opposite
None of the above

21. When bank balance increases, it is debited in _______ and credited in ________.

Pass Book; Cash Book
Cash Book; Pass Book
None of the given options

22. Any decrease in the bank balance is recorded on the ______ side of the cash book and in the _______ column of the pass book.

Debit; Credit
Credit; Debit
None of the given options

23. _________ balance of cash book and ________ balance of pass book is known as a favorable balance.

Credit; Debit
Debit; Credit
None of the above

24. Withdrawals are recorded in the ______ column of the pass book.

Debit
Credit

25. A bank reconciliation statement provides a mechanism of _________ over cash.

External Control
Maximum Control
Internal Control
None of the above

26. The total amount of unpresented cheques is _________ in a bank reconciliation statement.

Credited
Debited
Neither credited nor debited

27. All amounts credited by the bank but not recorded in the cash book are _________ in the bank reconciliation statement.

Credited
Debited
None of the above

28. The amount of any items due to which cash book shows more balance than the pass book balance, are _______ in the bank reconciliation statement (and vice versa).