In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book.
(A) Adjusted
(B) Unadjusted
(C) Understated
(D) Overstated
Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.
(A) $500 will be debited
(B) $500 will be credited
(C) Non-adjustable
(D) $1000 will be subtracted
___________ are checks that are issued by the business but not yet presented to bank
(A) Uncollected checks
(B) Uncredited checks
(C) Outstanding checks
(D) Bounced checks
Uncollected checks also referred as______________?
(A) Unpresented checks
(B) Uncredited checks
(C) Outstanding checks
(D) Bounced checks
Standing orders are ________
(A) Credited in the cash book
(B) Debited in the cash book
(C) Entered in the bank statement
(D) Entered in the petty cash balance
Which of the following is generally not the party to a check?
(A) Payee
(B) Payer
(C) Bank
(D) Seller
Postdated checks are considered as__________?
(A) Cash
(B) Bank balance
(C) Accounts receivable
(D) Cash reserve
Petty cash fund is supposed to be replenished?
(A) Every day
(B) Every half year
(C) Every year
(D) At the end of every accounting period
A credit balance in cash book indicates?
(A) Bank balance
(B) Cash at bank
(C) Bank overdraft
(D) Bank underdraft
The closing balance of petty cash book is considered as_________?
(A) Liability
(B) Asset
(C) Expenses
(D) Income