Skip to content

CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

Which of the following is a recognised objective of preparing a Bank Reconciliation Statement?

A recognised objective of a Bank Reconciliation Statement is to detect errors, delays or frauds in the cash book or in the bank's records. It also helps in knowing the true bank position, but it does not remove the need for a cash book.

  1. ATo ensure that the bank pays interest on every deposit
  2. BTo detect errors, delays or frauds in the cash book or by the bankCorrect
  3. CTo increase the balance shown in the passbook
  4. DTo avoid the need to maintain a cash book

Explanation

Regular reconciliation helps in finding errors, omissions and possible frauds in either the firm's cash book or the bank's records. It does not increase the balance, ensure interest, or remove the need for a cash book.

Did you get it right without looking?

One question tells you little. A timed set on Bank Reconciliation Statement shows your real accuracy, how long you take and where you lose marks.

Practise Bank Reconciliation StatementFree diagnostic mock

More Bank Reconciliation Statement questions