PRC-1 · Chapter 9 · Question 87 of 100
In the context of bank reconciliations, a bank overdraft means:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The business owes money to the bank
Explanation
An overdraft occurs when a business withdraws more money than it has deposited, resulting in a liability where the business owes money to the bank.
More Bank Reconciliations MCQs
- Q89Which side of the cash book is used to record cheques issued to suppliers?
- Q90If the bank statement shows an overdraft of Rs. 5,000, and unpresented cheques amount to Rs. 2,000, what is the cash book balance…
- Q91If the bank statement shows an overdraft of Rs. 5,000, and uncredited cheques amount to Rs. 2,000, what is the cash book balance (assuming…
- Q92If the adjusted cash book shows an overdraft of Rs. 4,000, and unpresented cheques amount to Rs. 3,000, what is the bank statement balance?
- Q93If the adjusted cash book shows an overdraft of Rs. 4,000, and uncredited cheques amount to Rs. 3,000, what is the bank statement balance?