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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


A cash deposit made by business appears on the bank statement as _______ balance?

  • (A)  Debit
  • (B)  Credit
  • (C)  Expenses
  • (D)  Liability
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