Accounting Multiple Choice Question – 15 February 2020

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

The purpose of a firm preparing a bank reconciliation statement is . . .

Select ONE answer:

  1. to ascertain the amount of financing, if any. which it may require in the future.
  2. to ascertain whether bank charges have been correctly calculated by the bank.
  3. to ascertain whether the correct amount of interest has been paid to the firm by the bank on all money on deposit.
  4. to reconcile the bank balance in the firm’s accounting records at a particular date with that shown on its bank statement on the same date.

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 4

  1. Not correct – A projection of the firm’s future cash inflows and outflows is required to ascertain the amount of financing, if any, which it may require in the future.
  2. Not correct – A calculation, not a reconciliation, is required to ascertain whether bank charges have been correctly calculated by the bank.
  3. Not correct – A calculation, not a reconciliation, is required to ascertain whether the correct amount of interest has been paid to the firm by the bank on all money on deposit.
  4. Correct

 

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