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CA Foundation Bank Reconciliation Statement — practice questions — page 3

Explore 65 free Bank Reconciliation Statement questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Bank Reconciliation Statement questions and exercises with answers

Showing questions 61–65 of 65.

A discrepancy found during reconciliation may be recorded as aRead the answer and worked solution →Which is not a usual reason for a cash book and passbook difference?Read the answer and worked solution →Customers commonly use bank statements toRead the answer and worked solution →After reconciling, differences caused by the firm's own errors are fixed inRead the answer and worked solution →Passbook exceeds the cash book. Which is the likely cause?Read the answer and worked solution →

Worked practice questions

A discrepancy found during reconciliation may be recorded as a

  1. Dividend payable
  2. Bonus share issue
  3. Capital reserve
  4. Reconciling item
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Correct answer: D. Reconciling item

Differences that are identified are listed as reconciling items or exceptions pending investigation.

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Which is not a usual reason for a cash book and passbook difference?

  1. Stock valuation change
  2. Errors in either record
  3. Timing differences
  4. Bank fees and interest
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Correct answer: A. Stock valuation change

Stock valuation has no effect on bank balances, while timing, fees, interest and errors all do.

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Customers commonly use bank statements to

  1. Audit the bank's own books
  2. Fix the bank's interest rate
  3. Approve the bank's dividends
  4. Monitor cash flow and reconcile
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Correct answer: D. Monitor cash flow and reconcile

A statement lets the holder watch cash flow, spot fraud and carry out reconciliations.

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