Accounting Mcqs

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

(A) Bank charges will be debited in cash book

(B) Bank charges will be added to cash book balance

(C) Bank charges will be credited in cash book

(D) Bank charges need no adjustment in cash book

Submitted By: Ali Uppal


Bank reconciliation statement is prepared by____________?

(A) Accountant of the business

(B) Manager of the business

(C) Controller of the bank

(D) Accountant of the bank

Submitted By: Ali Uppal


A check returned by bank marked “NSF” means that:

(A) Bank can’t verify your identity

(B) There are not sufficient funds in your account

(C) Check has been forged

(D) Check can’t be cashed being illegal

Submitted By: Ali Uppal


Submitted By: Ali Uppal


Accommodation bills are generally for?

(A) Genuine trade reasons

(B) For mutual financial accommodation

(C) To help augment money supply

(D) All the three

Submitted By: Ali Uppal


A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

(A) $1000 will be added to cash book balance

(B) $2000 will be deducted from cash book balance

(C) $3000 will be added to cash book balance

(D) $3000 will be subtracted from cash book balance

Submitted By: Ali Uppal


Submitted By: Ali Uppal


Favorable balance of bank statement implies that

(A) Credit balance

(B) Debit balance

(C) Bank overdraft

(D) Adjusted balance

Submitted By: Ali Uppal


_________ Checks that are presented to bank but not yet credited by the bank.

(A) Unpresented checks

(B) Uncredited checks

(C) Outstanding checks

(D) Bounced checks

Submitted By: Ali Uppal


Which of the following error results in unadjusted cash book balance?

(A) Outstanding checks

(B) Unpresented checks

(C) Deposit in transit

(D) Omission of Bank charges

Submitted By: Ali Uppal