PRC-1 · Chapter 9 · Question 16 of 100
Which of the following represents a pure 'timing difference' in bank reconciliation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Unpresented cheques.
Explanation
Timing differences occur when an item is correctly recorded in one set of books but has simply not yet reached the other due to delays (like clearing time). Unpresented and uncredited cheques are the primary examples.
More Bank Reconciliations MCQs
- Q18If a BRS starts with a favorable (debit) balance as per the Cash Book, how are unpresented cheques treated to arrive at the bank statement…
- Q19If a BRS starts with a favorable (debit) balance as per the Cash Book, how are uncredited lodgments treated to arrive at the bank…
- Q20When preparing an adjusted cash book, which of the following will decrease the cash book balance?
- Q21A cheque of Rs. 45,000 received from a customer was deposited but returned unpaid by the bank due to insufficient funds. What is the…
- Q22Which of the following is NOT a cause for a difference between the cash book and bank statement balances?