Accounting Multiple Choice Question – 20 February 2020

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

Accounting

Which of the following will not give rise to a difference between the balance shown on a firm’s bank statement and that shown, at the same date, in its nominal (general) ledger account for the bank?

Select ONE answer:

  1.  Errors made by the firm’s bank.
  2. Cheques are written by the firm which has not yet appeared on its bank statement.
  3. Lodgements made by the firm which have not yet appeared 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 4

  1. Not correct – Errors. made by the bank will give rise to a difference because the same errors will not have been made in the nominal (general) ledger.
  2. Not correct – Cheques written by the firm which have not yet appeared on its bank statement (outstanding cheques) will give rise to a difference because they have been recorded as having been issued in the nominal (general) ledger but they are not recorded in the bank statement.
  3. Not correct – Lodgements made by the firm which have not yet appeared on its bank statement (outstanding lodgements) will give rise to a difference because they have been recorded in the nominal (general) ledger but they are not recorded in the bank statement.
  4. Correct

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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