PRC-1 · Chapter 9 · Question 100 of 100
Reconciling items like unpresented cheques and uncleared lodgements in a Bank Reconciliation Statement are naturally cleared when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The bank processes the pending transactions in a subsequent period.
Explanation
These are mere timing differences. They clear naturally without any adjustment in the cash book once the bank eventually processes the transactions and they appear on a future bank statement.
More Bank Reconciliations MCQs
- Q2If a bank statement shows a 'Debit' balance, what does this signify for the business?
- 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: