PRC-1 · Chapter 9 · Question 1 of 100
What is the primary purpose of preparing a Bank Reconciliation Statement (BRS)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To reconcile the difference between the cash book's bank column balance and the bank statement balance.
Explanation
The purpose of a bank reconciliation statement is to reconcile the timing differences and errors that cause a mismatch between the business's record of its bank account (cash book) and the bank's record (bank statement).
More Bank Reconciliations MCQs
- Q3Which of the following describes a credit balance in the bank column of the cash book?
- Q4Which of the following items is NOT required to be adjusted in the revised/adjusted cash book?
- Q5Cheques issued by the business to suppliers but not yet presented to the bank for payment are known as:
- Q6Cheques received and deposited into the bank but not yet cleared or credited by the bank on the statement date are known as:
- Q7A customer directly transferred funds into the business bank account. The business was unaware until they received the bank statement. How…