Question

Test Your Understanding - II Select the Correct Answer: 1. A bank reconciliation statement is prepared by : (a) Creditors (b) Bank (c) Account holder in a bank (d) Debtors 2. A bank reconciliation statement is prepared with the balance : (a) Passbook (b) Cash book (c) Both passbook and cash book (d) None of these 3. Passbook is a copy of : (a) Copy of customer Account (b) Bank column of cash book (c) Cash column of cash book (d) Copy of receipts and payments 4. Unfavourable bank balance means : (a) Credit balance in passbook (b) Credit balance in cash book (c) Debit balance in cash book (d) None of these 5. Favourable bank balance means : (a) Credit balance in the cash book (b) Credit balance in passbook (c) Debit balance in the cash book (d) Both b and c 6. 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 a and b (d) None of these

Answer 1

Answer:

1 . (c) account holder in bank

2. (c) cash book and passbook

3. (a) copy of customer account

4. (b) credit balance in cash book

5. (d) both b and c

6. (b) Reconcile the difference between the bank balance shown by the cash book and bank passbook