Bank Transactions and Reconciliation Statements
Accounts · 50 practice questions
Instruments of bank transactions; the e-banking system; causes of discrepancies between the cash book and bank statement; the bank reconciliation statement.
- Identify instruments of bank transactions (e.g. cheques, pay-in-slips, credit/debit cards, internet banking) and their uses.
- Assess the impact of automated credit systems, credit transfers and direct debit on cash balances.
- Identify factors causing discrepancies between the cash book and bank statement, and determine the adjusted cash book balance.
Try a few questions
- Practice question 1
A bank's own monthly statement specifically provides an independent external record that a business can use to verify
- A.no particular record of its own whatsoever, despite the statement being independent
- B.only the bank's own internal, confidential operating procedures
- C.a factor entirely unrelated to verifying its own cash book entries
- D.its own cash book entries
Show the answer
D. its own cash book entries
A bank's own monthly statement specifically provides an independent external record a business can use to verify its own cash book entries.
- Practice question 2
A cheque specifically is a written instruction to a bank to pay a stated sum of money from
- A.the bank's own account, rather than the drawer's account
- B.the drawer's own account
- C.a factor entirely unrelated to the drawer's own bank account
- D.the payee's own account, rather than the drawer's account
Show the answer
B. the drawer's own account
A cheque is specifically a written instruction to a bank to pay a stated sum from the drawer's own account.
- Practice question 3
Automated credit systems, mentioned in relation to e-banking, specifically can process recurring payments without requiring
- A.a factor entirely unrelated to manual initiation of any kind
- B.any form of prior customer authorization whatsoever
- C.any connection to a bank account of any kind, despite processing payments
- D.manual initiation each time
Show the answer
D. manual initiation each time
Automated credit systems specifically can process recurring payments without requiring manual initiation each time.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
Practise with instant feedback
Answer questions one at a time and see the right answer and the reason straight away. Free to start.
Start practising