- Account: Mr. A bank reconciliation statement for the month of January Sheffield how he can make the work of reconciliation easier. What items would you query with the bank, if any and why? Required: i Prepare a statement showing Hay's adjusted cash...Link: https://baatraining.com/declaration/
- Nick Ross which did not match with her bank statement. We should query with the bank for two items:1 Who was the drawer of the cheque no. Most probably, it was not drawn by us. Rent 9 Cr. The unreasonable delay of 10 days is not acceptable....Link: https://answers.yahoo.com/question/index?qid=20071019014518AA81lxx
- The answers may vary according to your assumptions. Bank Reconciliation statement as at Roberts cheque receipt Sheffield Roberts Short Knowall Sheffield's salary cheque wrongly enteredLink: https://pcmag.com/reviews/liberty-tax-2021-tax-year-2020
- Questions and Answers See below some examples of bank reconciliation questions and answers. You can also visit our article explaining how to do bank reconciliations and practice bank reconciliation exercises with answers here. Bank Reconciliation Question 1 Jee asks: Since the bank reconciliation statement should be done on a monthly basis, say if a company has a lot of banks, is it possible to out-source the bank reconciliation to the bank itself and what are the disadvantages? Answer: In my experience it is not possible to outsource reconciliations to banks because they do not usually offer this service. It is however possible to outsource the task to a bookkeeper or accountant. A business with many bank accounts should have a separate cash book for each account. I know of a lawyer who has five separate bank accounts. Bank reconciliations are performed twice a month for each using bookkeeping software.Link: https://library.e.abb.com/public/cd44b7e083bc29f2c12577ee00161d75/9ARD000298D000_-_en_KEMA_Test_Report_for_CI868_GOOSE_conformance.pdf
- There is bookkeeping software available, such as Xero, that has the capacity to link directly to the bank account. Every night the software automatically downloads the bank transactions into the cash book, which saves the bookkeeper a lot of time because they do not have to manually enter each transaction. Also, many banks provide a special file that can be downloaded directly into the bank reconciliation section of the bookkeeping software so that the cash book can be automatically updated Answer: How to fix the problem depends on whether you are using book-keeping software or keeping a manual cash book. Below are suggestions for both, but first, you need to find out what caused the problem in the first place. If you have already found the problem you can skip this part. To find the problem, you need to go through the previous month's cash book and bank statement.Link: https://universalclass.com/articles/math/basic-math/how-to-use-a-calculator.htm
- Remember that the actual bank statement will always have the right closing balance so any issues or adjustments will be found and made in the cash book or reconciliation. Highlight any transactions on the statement that are missing from the cashbook, or Highlight any transactions in the cash book that are not on the bank statement. Check if the transactions from point 3 above have been included in the final part of the reconciliation for the previous month i. Once you know exactly what has caused the opening balances to differ, you can move on to making the adjustments. If for some reason you cannot do this, try the following:- Step 1 : Undo the completed reconciliation for last month, enter in the missing transactions, redo the reconciliation but please note:- Only undo the reconciliation if you know that any adjustments made are not going to mess up sales tax calculations that may have already been made and paid to the revenue department such as GST or VAT etc.Link: https://sciencebuddies.org/science-engineering-careers/health/physical-therapist?class=AQVU0rIZLgB7XcNKwtPqBJw2AU1M-IaDnmvxAT5hNvJqlxufZ0tF56eujDaJqCfpj3JutGlI5abr7cqzH4zsXQEn
- But check with your local tax department to be sure. Some bookkeeping software will lock a month that has been reconciled and so will not allow you to undo the reconciliation or make any adjustments in the previous month. In this case, do Step 2 below. The closing balance of last month and the opening balance of the current month being reconciled will still be wrong, but the closing balance of the current reconciliation month will be right, which is what you want. You should write out a note explaining what occurred and attach it to the back of the bank reconciliation so that if you have to look back at it later in the year you will be reminded of how it happened and what you did to fix it.Link: https://moodle.org/mod/forum/discuss.php?d=111732
- Manual Bookkeeping If you are using a manual bookkeeping system i. Just remember however, if you have sales tax or VAT that has already been declared for last month, then simply follow Step 2 above. Note: One of the first things an accountant does at the end of the year is to check your cash book closing balance and reconciliations against the bank statement for the final day of the end of the financial year. If there are differences on that final day, he will want to know why, so you may as well let him know up front instead of waiting for him to contact you.Link: http://202.191.140.165/otetmay19/uploads/loadpdf.php?file=k7m5p+fQk9e8v9/gwuKWo5jWzst9tN/FppyXow==&t=xbnBpNzExcqxxtTn2sjGzNLS09nHb9vImA==
- Answer : Importance of Bank Reconciliation : Preparation of bank reconciliation helps in the identification of errors in the accounting records of the company or the bank. Cash is the most vulnerable asset of an entity. Bank reconciliations provide the necessary control mechanism to help protect the valuable resource through uncovering irregularities such as unauthorized bank withdrawals. However, in order for the control process to work effectively, it is necessary to segregate the duties of persons responsible for accounting and authorizing of bank transactions and those responsible for preparing and monitoring bank reconciliation statements. If the bank balance appearing in the accounting records can be confirmed to be correct by comparing it with the bank statement balance, it provides added comfort that the bank transactions have been recorded correctly in the company records. Monthly preparation of bank reconciliation assists in the regular monitoring of cash flows of a business.Link: https://files.eric.ed.gov/fulltext/ED374892.pdf
- Question When Bank Reconciliation Statement Prepared? Answer : Normally Bank Reconciliation Statement is prepared by the trader on closing date of accounts, i. Sometimes it is prepared at the end of every month after preparing Cash Book or regularly after certain interval to check the accuracy of Cash Book. Answer : Steps in preparing a bank reconciliation statement: Step 1 — Find the deposits in transit: The first step is to see if one or more deposits are in transit. You can do so by comparing the deposits in your accounting record with the deposits shown in your bank statement.Link: https://study.com/academy/answer/what-did-chuang-tzu-do.html
- If you find a deposit in your accounting record that has not been shown in the bank statement, it means that deposit is in transit. Add to the bank statement balance all deposits that are in your accounting record but have not been entered in the bank statement. You can do so by comparing the checks issued in your accounting record with the checks paid in your bank statement. If your accounting record shows that a check has been issued and your bank statement does not show a corresponding entry for that check, it means it is an outstanding or unpresented check. Deduct from the bank statement balance all the checks that you have issued and entered in your accounting record but have not been paid by the bank.Link: https://justanswer.com/medical/86yqq-went-doctor-annual-physical-exam-blood-test.html
- Step 3 — Find and add credit memorandum to your accounting record: Bank issues a credit memorandum when it collects a note receivable on behalf of the depositor. Find if there is any credit memorandum issued by the bank that you have not entered in the accounting record. Add to your accounting record any credit memorandum not entered in your accounting record. Step 4 — Find and deduct debit memorandum from your accounting record: Bank provides various services to its depositors such as printing checks, processing NSF checks and collecting notes receivables etc. Find any debit memorandum not recorded in your accounting record. Deduct from your accounting record any debit memorandum issued by the bank but not entered in the accounting records. Step 5 — Are the adjusted balances equal?Link: https://indianmotorcycleitaly.it/foundations-for-geometry-chapter-test-form-b-answer-key.html
- See whether adjusted balance of your accounting record is equal to the adjusted balance in your bank statement. Step 6 — Make appropriate journal entries: The final step in a bank reconciliation is to prepare appropriate journal entries for the items that you have not recorded yet in your accounting records. The usual reasons of this disagreement are explained below: Outstanding checks: Outstanding checks also known as unpresented checks are the checks that have been issued by the company to a person a creditor, for example but have not yet been presented for payment. The amount of these checks are recorded by the company but no entry is made by the bank before the end of the month. Deposit in transit: Deposit in transit means the cash received from a party has been recorded by the depositor but has not been entered by the bank in the bank statement.Link: https://sites.google.com/a/lyneka-gemucy.web.app/kojorgebooks/-get-vv-aa-s-book-a2-key-for-schools-trainer-1-for-the-revised-exam-from-2020-six-practice-tests-with-answers-and-teacher-s-notes-with-downloadable-audio
- It usually occurs on the last day of the month. Credits for interest earned: Banks pay interest on some accounts. Service charges: Banks provide various services to its customers and deduct service charges from their accounts. The depositors usually are not aware of such deductions. When a customer deposits a check in his account, the bank immediately credits his account with the amount of the check. Sometime such checks are not honored because the person issuing the check does not have sufficient funds in his account. In such a situation, the bank reduces the balance of the customer. The dishonored check is returned to the depositor as NSF check. Answer : The items on the bank reconciliation that will require a journal entry are the items noted as "adjustments to books.Link: https://vceengine.com/PDX-101-vce-test-engine.html
- Income Statement Exam Questions And Answers By pincomeq 15 Feb, Access the answers to hundreds of income statement questions that are explained in a way that s easy for you to understand. Preparing the income statement chapter exam instructions. Income statement exam questions and answers. In the absence of information about the date of repayment of a liability then it may be assumed. Green as at 31 march in both horizontal and vertical style. Comprehensive income statement for the year ended 31 st march For multiple choice and true false questions simply press or click on what you think is the correct answer.Link: https://byrokko.com/en/products/shine-brown?fbclid=IwAR08w1Q5NdTukYYw65dNPVJoh9yACrAtnoqpZKhpZGg6VsUsgz3A5zwTz5A_aem_AauMnVteh_-FRaXh7TGIiZewjYZjoheuPW2fpyd0Wn2-x4U64KFmcBJXMhYOflHmYHWct1cOJGrlTc_Gqsdw_yGRGcnQl97ZfMp2gjYFV23hzg
- The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. Preparation of balance sheet horizontal and vertical style. Prepare balance sheet for f. Workbook has 88 questions and exercises starting from the accounting equation and basic concepts to journal entries t accounts the trial balance financial statements the cash flow statement. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc.Link: https://sivajicet.org/jnkvv-ph-d-entrance-exam-form/
- The solution answers 40 multiple choice questions related to balance sheet income statement perpetual invenotyr system periodic inventory system bank reconciliation etc. No frames version chapter 4. Get help with your income statement homework. If you want more practice with full accounting questions and answers you should get the official exercise book for this site volume 2 in the accounting basics series. Green as at 31 march Skip breadcrumb navigation home. Exam january 5 questions with notes for students exam march 27 questions exam march exam march 27 appendix appendix elaboration question 3 exam march 27 answers answers exam in march exam march 26 questions voorbeeldtentamen 5 january questions and answers. Examination september model exam institute of business.Link: https://myschool.ng/classroom/agricultural-science
- Choose your answers to the questions and click next to see the next set of questions. The following trial balance is prepared after preparation of income statement for f. You can skip questions if you would like and come. If you have difficulty answering the following questions learn more about this topic by reading our income statement explanation.Link: https://home.pearsonvue.com/cfpt
- The bank statement balance needs to be adjusted for these items: Errors in the cash book The business may make a mistake in their cash book. The cash book balance will need to be adjusted for these items. Errors in the bank statement The bank may make a mistake, e. The bankstatement balance will need to be adjusted for these items. Outstanding payments and receipts Outstanding or unpresented cheques Suppose a cheque relating to a payment to a supplier of Poorboy iswritten, signed and posted on 29 March. It is also entered in the cashbook on the same day. Poorboy would regard the payment as beingmade on 29 March and its cash book balance as reflecting the trueposition at that date. Outstanding deposits In a similar way, a trader may receive cheques by post on 31March, enter them in the cash book and pay them into the bank on thesame day.Link: https://jagranjosh.com/articles-cmat-question-papers-model-papers-1323255685-1
- Nevertheless, the cheques may not appear on the bank statementuntil 2 April. Again the cash book would be regarded as showing thetrue position. Outstanding deposits are also known as outstandinglodgements. Beware of overdrawn balances on the bank statement. Beware of aggregation of deposits in a bank statement. Note that the bank balance on the statement of financial position is always the balance per the revised cash book. Which of these items will require an entry in the cash book? Patel a Prepare a bank reconciliation statement at 1 December. What balance is shown on the bank statement at 31 December 20X6?Link: http://rfid-demo-03.handsonsystems.com/cgi-bin/reading.php?article=ivy_software_final_exam_answers_pdf&code=1a8e78e9c4da567b29815b6bc5d83d1d
- Documentation for evaluation of rates at which product is procured Tax-related documentation, if any. Question 8 — What, according to you, is the importance of budget in any organization? The budget sets the tone for the organization, i. Is the management planning to be aggressive with its sales targets or planning to cut down costs or wants to maintain a steady pace just like last year? It is also very important to keep a check on expenses and create a culture where employees start taking responsibility. Employees tend to be careful with their approach as they know that all current year numbers will be tracked and then compared to the budgets allotted to them and their team. But a working capital budget is also equally important as it helps to arrange funds on a timely basis.Link: https://somervillenjk12.org/cms/lib5/NJ01001815/Centricity/Domain/80/ct_ans_key05.pdf
- Also, look at What is Budgeting? Question 9 — What are expense provisions? Is it important to book these provisions? In day-to-day accounting, there is a high chance that expenses already incurred in the given period may not be booked. The reasons for this could vary, e. A provision should be created in the books for these expenses, which have already been availed by us.Link: https://amazon.com/PRAXIS-Special-Education-Teacher-Certification/dp/0738608726
- Expenses incurred in a given financial year should be booked in the same year to maintain the true and fair view of the financial statements. Still, on the other hand, potential revenue is not taken into the books. Keep this in mind because there is a trick question about the provision of income which you expected to incur in the future.Link: http://blogs.rgj.com/cgi-bin/open/file.php?title=sear+application+test+answers+pdf&id=6c988e4bf98800e176dd3e335ec18e92
- Cash and bank balance is a part of the total working capital availability of any organization. Working capital is much border than just cash and bank balances. Current assets and liabilities also make up for the working capital of the business. Let me explain using an example. However, your organization does not have sufficient cash or bank balance to pay off the debtor. The simple solution is to recover the funds from the creditor and pay the same to the debtor. This is how the day-to-day fund requirement of the company gets managed by maintaining appropriate working capital, which need not only be balanced in the bank or cash in hand.Link: https://liveworksheets.com/my1249315bs
- Question 11 — Assume you are given financial statements of three different competitors. You are required to ascertain which of these three is in the best financial shape. What are the two main parameters that you will use to judge? The two parameters which I would like to check are: a Correlation between revenue and profit of the organization — A company with a higher revenue is not necessarily doing well.Link: https://youtube.com/watch?v=wA65AIMQWq8
- Needless to say that Company B is more efficient and profitable. The management of this company is moving in the right direction. More the profit, the better will be the dividend declared for its shareholders and better capacity to pay off the debt and interest. Only debt means high-interest costs. Only equity means that the company is not leveraging the opportunities available in the market for lower interest rates. Tip 1: Liquidity is also another parameter which can be mentioned if required. For this, you can calculate the working capital of each company and make conclusions. The working capital should not be too high, which results in the blocking of funds of the company, nor should it be too low, which will not fulfill its day to day funding requirements. The above question, when answered with the ratios, will create a bigger and better impact on the interviewer. Have a look at this complete guide to Ratio Analysis Formula Question 12 — Since you mentioned that MS Excel would be your best friend, give us three instances in which Excel will make your life easier Various reports can be extracted from the ERP.Link: https://youtube.com/watch?v=C2mUNhIXJ18
- However, many times reports required in specific formats, and this may not be possible in the ERP. This is where excel comes into the picture. Data can be sorted, filtered, redundant data fields can be deleted, and the data can then be presented in the customized format. Excel is also required for linking multiple sets of data. They can be clubbed into one report. The use of Excel becomes the most important for doing various reconciliations. These cannot be done in the ERP. All the reconciliations will then have to be done in Excel only. Also, most of the organizations make their financial statements in Excel as they have to adhere to the specific statutory format, which may not be extracted from the ERP. So again, Excel acts as a savior in this case. Brushing up basic Excels will come in handy during the interview. Some of the formulae which one needs to know are sum, sumproduct, sumif, countif , subtotal, min, max, vlookup, hlookup, use of pivot tables, round, etc.Link: https://truebraindumps.com/
- Have a look at this. MS Excel Training Question 13 — Suggest improving the working capital flow of the company According to my, stock-in-hand can be the key to improving the working capital of the company. Out of all the components of working capital , the stock is controllable by us. We can pressurize our debtors to pay us instantly, but we cannot have direct control over them because they are separate legal entities, and in the end, they are the ones who give us business. We can tend to delay payments of our suppliers, but it spoils business relations and hampers the goodwill in the industry. Plus, if we delay payments, they might not supply goods in the future. Keeping liquidity in the form of funds in the bank can help the working capital flow, but it comes at an opportunity cost. Keeping all this in mind, I believe that inventory management can go a long way in improving the working capital of the company.Link: https://youtube.com/watch?v=sIm9Z1iHfkE
- Excess stocking should be avoided, and the stock turnover ratio should be high. This answer is also generic. Some industries work on negative working capital as well, such as e-commerce, telecommunication, etc. So please do a bit of research about working capital before answering. Question 14 — What does the cash flow statement about the company? It is very interesting to correlate the cash flow statement and the profit and loss statement of the company. What I am trying to say is, high revenue does not mean that the company has a high availability of cash.Link: https://sqlservercentral.com/blogs/source/3728528
- At the same, if the company has excess liquid cash, it does not mean that the company has earned a profit. Cash flow shows how much CASH the company has generated in the given year. It can also show if the company is in a position to pay for its operations soon. Earning profit is one thing, but able to generate cash when the company needs to pay its debts is another thing. Operations related to day-to-day operations which help the company earn revenue. Financing activities show activities such as borrowings, shares issues, etc.Link: https://homeschoolmath.net/worksheets/GCF_LCM.php
- Question 15 — What is the financial impact of buying a fixed asset? From the financial statement point of view, the following will be the impact: Income Statement — Buying will not have any direct impact on the income statement. However, year on year, you will charge depreciation as an expense to the income statement. Balance Sheet — Fixed assets will increase, whereas current assets cash paid will decrease if the payment is made in the same financial year. If the payment is not made in the same financial year, then instead of a decrease in current assets, there will be an increase in current liabilities. Also, yearly, when depreciation is charged to the income statement , the asset will be reduced. Cash flow statement — There will be a cash outflow that will be shown under the cash from investing activities section of the cash flow statement. An accountant has to coordinate with various teams such as customer supporting, marketing, procurement, treasury, taxation, business development, etc.Link: https://portlandoregon.gov/police/article/31555
- As already mentioned, documentation plays a key role in accounting, and without proper documentation, an accountant will not be able to post entries in the accounting system. So going with the flow of the above question, the candidate can also mention that people management is his or her key strength. Question 17 — If you get this job, what will your routine day of 8 hours be like? I believe the accounting ERP used by your organization and Microsoft Excel will be my best friends, and I will be spending maximum time with these two applications at work.Link: http://stibersystem.com/how-to-roceb/2c6527-hypothesis-testing-exam-questions-and-answers-pdf
- This should be fine-tuned as per the exact job description. Let us say you are applying for the position of Accounts Receivable Accountant. In this case, you need to mention revenue reports, follow up with customers for payment whenever due, revenue recognition, raising invoices to customers, etc. On the other hand, if the profile is that of Accounts Payable Accountant, then you need to mention purchase orders, materials receipt, and releasing payment of vendors on a timely basis, etc.Link: https://business.linkedin.com/talent-solutions/blog/interview-questions/2018/10-unexpected-interview-questions-to-get-unrehearsed-answers
Bank Reconciliation Exam Questions And Answers
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