PRC-1 · Chapter 9 · Question 48 of 100
The bank reconciliation statement is best described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An internal control document prepared to reconcile cash book and bank statement balances.
Explanation
The BRS is not part of the double entry system itself; it is a memorandum working paper used as an internal control to ensure cash records are accurate.
More Bank Reconciliations MCQs
- Q50A payment of Rs. 1,200 was recorded in the cash book as Rs. 2,100. What is the correcting entry in the cash book?
- Q51Which of the following correctly describes an unfavorable (overdraft) balance in the cash book?
- Q52Which of the following correctly describes a favorable balance on a bank statement?
- Q53An unfavorable (overdraft) balance on a bank statement is represented by a:
- Q54If bank charges of Rs. 500 were accidentally recorded twice in the cash book, how should this be corrected in the adjusted cash book?