Benefits of preparing Bank Reconciliation Statement includes___________?
Correct answer: C. All the three
- A. It bring out any errors committed in preparation of Cash book / Bank Pass Book
- B. Highlights under delay in clearance of cheques deposited but not credited
- C. All the three
- D. Help know actual bank balance
Explanation
Bank reconciliation can reveal errors in either book, identify cheques deposited but not yet credited, and establish the actual bank balance. Hence all three listed benefits apply.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
Debit balance as per bank pass book mean_____________?
Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?
Provision is created for____________?
Bank reconciliation is a statement prepared to reconcile__________?
The Bank Reconciliation Statement is prepared?
Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?