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.
Credit
Debit
Both a. & b.
None of the above
2. The copy of customer account with a bank is called ————–
Cashbook
Passbook
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-
Bank
Endorsee
Drawee
Drawer
9. In a Promissory note, _________ is the drawer.
Debtor
Creditor
Payee
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.
One
Five
Two
Three
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-
Drawer
Drawee
Payee
Acceptor
14. Bill of Exchange is an ____________ in writing.
Instrument
Document
Acceptance
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
Receipt
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 ____________
Information
Report
Instruction
None of the above
23. —————— is the brain of the computer.
Monitor
CPU
Mouse
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?
Monitor
Bar code reader
Visual display unit
Printer
26. —————— is the first stage of the computerized accounting system.
TDS
TAS
TPS
None of the above