The Bank Reconciliation Statement is prepared?
Correct answer: A. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
- A. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
- B. To arrive at the Bank Balance
- C. To arrive at the Cash Balance
- D. To rectify the mistakes in the Cash Book
Explanation
The statement explains why the balance in the cash book differs from the balance in the bank statement. It does not itself rectify cash-book errors or calculate a new cash balance.
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
Bank reconciliation is a statement prepared to reconcile__________?
Benefits of preparing Bank Reconciliation Statement includes___________?
Debit balance as per bank pass book mean_____________?
Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?
Debit side of Bank Pass book corresponds to___________?
Credit balance as per Cash Book mean____________?