Online Test — Bank Reconciliation Statement
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
A BRS reconciles the cash book balance with the:
Trial balance
Pass book balance
Profit
Petty cash
Explanation: It ties the cash book balance to the pass book balance.
Question 2 of 15
The bank's record of the firm's account is the:
Cash book
Pass book (bank statement)
Journal
Ledger
Explanation: The pass book/bank statement is the bank's record.
Question 3 of 15
A deposit is a debit in the cash book but a ____ in the pass book.
Debit
Credit
Balance
Charge
Explanation: The two books mirror each other; a deposit is a credit in the pass book.
Question 4 of 15
A cheque issued but not yet presented makes the pass book balance:
Lower
Higher than the cash book
Equal
Nil
Explanation: We reduced our cash book; the bank hasn't paid, so the pass book is higher.
Question 5 of 15
A cheque deposited but not yet cleared makes the pass book balance:
Higher
Lower than the cash book
Equal
Doubled
Explanation: We increased our cash book; the bank hasn't credited it yet.
Question 6 of 15
Most causes of difference in a BRS are due to:
Fraud
Timing
Tax
Inflation
Explanation: They are largely timing differences.
Question 7 of 15
A favourable balance as per the cash book is a:
Credit balance
Debit balance
Overdraft
Nil balance
Explanation: A debit balance in the cash book is favourable.
Question 8 of 15
Starting from the cash book balance, bank charges are:
Added
Subtracted
Ignored
Doubled
Explanation: The bank has already deducted them; subtract to reach the pass book balance.
Question 9 of 15
Interest collected by the bank (starting from cash book) is:
Added
Subtracted
Ignored
An overdraft
Explanation: The bank increased its balance by the interest; add it.
Question 10 of 15
An overdraft is a ____ balance in the cash book.
Debit
Credit
Nil
Favourable
Explanation: An overdraft is a credit balance in the cash book.
Question 11 of 15
An overdraft is a ____ balance in the pass book.
Credit
Debit
Nil
Favourable
Explanation: It is a debit balance in the pass book.
Question 12 of 15
In the adjusted cash book method, dishonoured cheques are:
Added
Subtracted
Ignored
Doubled
Explanation: A dishonoured cheque reduces the balance, so subtract it.
Question 13 of 15
After adjusting the cash book, the BRS deals only with ____ items.
Error
Timing
Tax
Capital
Explanation: Only timing items (cheques not presented/cleared) remain.
Question 14 of 15
Cash book balance Rs 30,000; cheques issued not presented Rs 5,000 only. Pass book balance:
Rs 25,000
Rs 35,000
Rs 30,000
Rs 5,000
Explanation: 30,000 + 5,000 = Rs 35,000.
Question 15 of 15
An advantage of the adjusted cash book method is that it:
Updates the firm's own records for missed charges/collections
Hides bank charges
Removes the bank
Avoids reconciliation entirely
Explanation: It forces the cash book to be corrected, so it shows the true bank balance.