Accounting Multiple Choice Question – 14 February 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A bank reconciliation statement is a statement which . . .

Select ONE answer:

  1. is sent by banks to their customers.
  2. is sent by banks to any of their customers who exceed their agreed credit limit with the bank.
  3. explains the difference between the bank balance shown in a firm’s accounting records and that shown on its bank statement.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct – A statement sent by banks to their customers is a ‘bank statement’ – i.e. a statement showing details of all transactions recorded by the bank on the customers’ accounts and the balances on those accounts.
  2. Not correct – Banks do send letters to customers who exceed their agreed credit limit with the bank but these letters are not known as bank reconciliation statements.
  3. Correct
  4. Not correct

 

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