level: Bank Reconciliations
Questions and Answers List
level questions: Bank Reconciliations
| Question | Answer |
|---|---|
| What is the purpose of a Bank Reconciliation? | To prove the completeness, accuracy, and validity of the cash receipts and payments. |
| What are the three main reasons for the bank statement and cash book not agreeing? | - Omissions - Errors - Timing deferences |
| What are unpresented cheques? | Time lag between writing a cheque and the payment appearing on the bank statement. |
| What are unrecorded lodgements? | Time lag between depositing amounts into the bank account and these appearing on the bank statement. |
| How should unpresented cheques be treated in a reconciliation? | They should be deducted. |
| How should unrecognised lodgements be treated in a bank reconciliation? | They should be added. |