Accounting MCQs on Bank Reconciliation Statement, Errors

Accounting MCQs: In this blog post, we are providing MCQs on Bank Reconciliation Statement, Errors and their Rectification.

MCQs on Bank Reconciliation Statement

1. In case of an overdraft, the cash book has a ________ balance.



 Both a. & b.

 None of the above

2. The copy of customer account with a bank is called ————–



 Petty Cash Book

 Bank column Cash Book

3. Identify the transaction in which the balance of the passbook will not be reduced if credit balance as per pass book is given as starting point.

 Cheques issued but not encashed

 Interest allowed by the bank

Cheques  deposited with the bank and dishonored

 Dividend collected by bank

4. Which transaction does not affect the bank reconciliation statement?

 Cheque issued

 Cash sales

 Bank charges

 Amount directly deposited by a customer.

5. The objectives of the Bank Reconciliation Statement are.

 To check the difference between cash Book and Pass Book.

 To know the financial position of the business.

 To control the position of liquidity of the firm.

 To get the profitability of the business.

6. Which of the reason is not a reason for the difference between Cash Book and Pass Book?

 Cheques issued but not presented for payment

 Bank deposit interest and dividend received directly

Machinery purchased against cash payment

Dishonors of cheques

7. Bill of Exchange contains an-

 Order to pay

 Request to pay

 Liability to pay

 None of the above

8. Bill of Exchange is prepared by the-





9. In a Promissory note, _________ is the drawer.




 None of the above

10. The fees charged on dishonor of bills is termed as-

Dishonor charges

Noting charges

 Cancellation fees

 None of the above

11. __________ days is allowed as days of grace for Bills of Exchange.





12. If the payment of the bill is not made on the due date, it is known as-

 Discounting the bill

 Retiring the bill

Dishonor of a bill

 Renewal of a bill

13. ___________ is the party upon  whom the bill is drawn-





14. Bill of Exchange is an ____________ in writing.




 None of the above

15. Which of the following may be possible situations of a bill drawn-

 It may be retained till the due date

It  may be discounted with a bank

 It may be endorsed

All of the above

16. Acceptance is not required in-

 Bills of Exchange

 Promissory Note


 None of the above

MCQs on Errors and their Rectification

17. Sales Book is totaled Rs.10,000 instead of 9,600

 Error of Omission

 Error of commission  

 Error of principle

 Compensating Errors

18. What will happen to Trial Balance when a total of Purchases Book is incorrect

Trial Balance is Affected

 Trial Balance is not affected

 Trial Balance will agree

 None of the above

19. When is Suspense Account opened?

 When Trial Balance does not agree  

 When Trial Balance Agrees

 Both a. & b

 None of the above

20. What types of errors are rectified through Suspense Account-

 Two-sided errors

 One-sided error 

 Compensating errors

 None of the above

21. Purchase of Furniture is entered in the Purchase Book-

 Error of commission

 Error of omission

 Compensating Errors

 Error of principle

22. Computer accepts data from the user and converts data into ____________




 None of the above

23. —————— is the brain of the computer.




 None of the above

24. Which of the following is an input device?

 Magnetic tape

 Magnetic disc

 Light pen

All of the above

25. Which of the following is not an output device?


Bar code reader

 Visual display unit


26. —————— is the first stage of the computerized accounting system.




 None of the above

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