Question 4:

A_______ balance of the cashbook and a_______ balance of the bank statement are known as favourable balances?

A. Debit, debit

B. Debit, credit

C. None of the above

D. All of the above

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In the preparation of the bank reconciliation statement, what action should be taken if there are outstanding cheques?

A. Add to cashbook balance

B. Deduct from cashbook balance

C. Add to bank statement balance

D. Deduct from the bank statement balance

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What action must be taken if there are bank charges appearing on the bank statement?

A. Add to cashbook balance

B. Deduct from cashbook balance

C. Add to bank balance.

D. Deduct from bank balance

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What action must be taken if interest is credited on the bank statement?

A. Add to cashbook balance

B. Deduct from cashbook balance

C. Add to bank reconciliation statement

D. Deduct from bank reconciliation statement

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What action must be taken when a fee is charged for a returned cheque by the bank and appears on the bank statement?

A. Add to cashbook balance

B. Deduct from cashbook balance

C. Add to bank reconciliation statement

D. Deduct from bank reconciliation statement

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A bank overdraft is included on the statement of financial position as a current asset?

A. True

B. False