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1)

Favourable balance of cash book implies that

A)  Credit balance of cash bookWRONG ANSWER

B)  Debit balance of cash bookRIGHT ANSWER!!!

C)  Bank overdraftWRONG ANSWER

D)  Adjusted balance of cash bookWRONG ANSWER


2)

A cash deposit made by business appears on the bank statement as _______ balance

A)  DebitWRONG ANSWER

B)  CreditRIGHT ANSWER!!!

C)  ExpensesWRONG ANSWER

D)  LiabilityWRONG ANSWER


3)

Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business)

A)  Cash receipt journalWRONG ANSWER

B)  Cash payment journalWRONG ANSWER

C)  Cash bookRIGHT ANSWER!!!

D)  Financial statementsWRONG ANSWER


4)

A check returned by bank marked "NSF" means that

A)  Bank can't verify your identityWRONG ANSWER

B)  There are not sufficient funds in your accountRIGHT ANSWER!!!

C)  Check has been forgedWRONG ANSWER

D)  Check can't be cashed being illegalWRONG ANSWER


5)

In the Bank reconciliation statement "Deposit in transit" is usually

A)  Subtracted from bank balanceWRONG ANSWER

B)  Added to bank balanceRIGHT ANSWER!!!

C)  Added to Cash book balanceWRONG ANSWER

D)  Subtracted from cash book balanceWRONG ANSWER


6)

Bank reconciliation statement is prepared by

A)  Accountant of the businessRIGHT ANSWER!!!

B)  Manager of the business WRONG ANSWER

C)  Controller of the bankWRONG ANSWER

D)  Accountant of the bankWRONG ANSWER


7)

Which of the following error results in unadjusted cash book balance?

A)  Outstanding checksWRONG ANSWER

B)  Unpresented checksWRONG ANSWER

C)  Deposit in transitWRONG ANSWER

D)  Omission of Bank chargesRIGHT ANSWER!!!


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 WRONG ANSWER

B)  Bank charges will be added to cash book balanceWRONG ANSWER

C)  Bank charges will be credited in cash bookRIGHT ANSWER!!!

D)  Bank charges need no adjustment in cash bookWRONG ANSWER


9)

Unpresented checks also referred as

A)  Uncollected checksWRONG ANSWER

B)  Uncredited checksWRONG ANSWER

C)  Outstanding checksRIGHT ANSWER!!!

D)  Bounced checksWRONG ANSWER


10)

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

A)  Uncollected checksWRONG ANSWER

B)  Uncredited checksWRONG ANSWER

C)  Outstanding checksRIGHT ANSWER!!!

D)  Bounced checksWRONG ANSWER







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