Confirm whether the following statements are true or false by placing a tick in grid x if

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Confirm whether the following statements are true or false by placing a tick in grid ‘x’ if true and grid ‘y’ if false.

(a) A debit balance in the Bank account in the Cash Book appears as a credit balance in the bank statement

(b) A Bank reconciliation statement is not part of the double-entry system

(c) An overdraft in the bank statement is reported as a current asset

(d) If the bank reconciliation starts with a debit balance from the bank account in the Cash Book, the bank charges appearing in the bank statement would be added

(e) A cash payment as petty cash imprest would appear in the bank statement

(f) If the bank reconciliation statement started with a favourable balance as stated on the bank statement, unpresented cheques would be deducted

(g) Every credit entry in the Bank account of the Cash Book will be on the basis of a cheque

(h) A reconciliation statement is prepared because the Bank account in the Cash Book is always correct and the bank statement is not

(i) The Bank account in the Cash Book cannot report a credit balance unless the bank has already approved overdraft facilities

(j) An instruction to a bank to pay a specified amount at stated intervals is a standing order

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Related Book For  answer-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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