CIMA BA3 · Chapter 6 · Question 2 of 10
When preparing a bank reconciliation, which of the following items requires an adjustment to the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Bank charges shown on the bank statement but not yet recorded by the business
Explanation
Bank charges are genuine transactions that the business has not yet recorded, so the cash book must be updated. Unpresented cheques and outstanding lodgements are timing differences, and a bank error must be corrected by the bank; all three are dealt with in the reconciliation statement.
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