A bank reconciliation statement is a statement which . . .
Select ONE answer:
- is sent by banks to their customers.
- is sent by banks to any of their customers who exceed their agreed credit limit with the bank.
- explains the difference between the bank balance shown in a firm’s accounting records and that shown on its bank statement.
- 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
- 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.
- 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.
- Correct
- Not correct
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