Accounting Multiple Choice Question – 18 February 2020

The figure for ‘bank’ which should be shown in a firm’s balance sheet at any particular date is . . .

Select ONE answer:

1. the balance at that date as shown by the firm‘s bank statement.
2. the balance at that date per the firm’s bank nominal (general) ledger account.
3. the reconciled bank balance on that date.
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 – This balance may be incorrect (may not be the true amount of money available to the firm) because it does not take account of, for example, cheques written but not yet cashed.
2. Not correct – This balance may be incorrect (may not be the true amount of money available to the firm) because it does not take account of bank charges, standing orders, dishonoured cheques, direct debits, credit transfers, and other items shown on the bank statement.
3. Correct
4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014