PRC-1 · Chapter 9 · Question 68 of 100
Which of the following causes a difference between the cash book and bank statement balances but does NOT require an adjusting entry in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Errors made by the bank
Explanation
Bank errors are outside the entity's control and cannot be 'corrected' by changing the entity's own cash book. They are held as reconciling items in the BRS until the bank rectifies them.
More Bank Reconciliations MCQs
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- Q71Which of the following is the standard formula to reconcile a favorable cash book balance to the bank statement balance?
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- Q74The unadjusted cash book shows a debit balance of Rs. 50,000. Bank charges are Rs. 1,500. A cheque from a customer for Rs. 5,000 is…