CIMA BA3 · Chapter 6 · Question 1 of 10
In a bank reconciliation, what are unpresented cheques?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Cheques written by the business and recorded in the cash book but not yet cleared by the bank
Explanation
Unpresented cheques are payments already recorded in the cash book that have not yet passed through the bank account. They are a timing difference and are adjusted for in the reconciliation, not in the cash book.
More Bank reconciliations MCQs
- Q3The bank statement of a business shows a balance of $6,420 in hand. There are unpresented cheques of $2,180 and outstanding lodgements of…
- Q4A cash book shows a debit balance of $3,870. The bank statement shows bank charges of $95, a credit transfer from a customer of $640 and a…
- Q5The bank statement of a business shows an overdraft of $1,240. There are unpresented cheques of $860 and outstanding lodgements of $2,300…
- Q6A business's cash book shows an overdraft of $2,150. Comparison with the bank statement at the same date shows: (1) A customer's cheque…
- Q7Which bank balance is reported in the statement of financial position?