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Bank Reconciliation Statement: Meaning/Definition - SS1 Accounting Past Questions and Answers - page 1

1

What is a bank reconciliation statement?

A

A document that helps you compare your bank account transactions with the records held by your bank

B

A loan application form

C

A tax return form

D

A legal agreement

correct option: a
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2

What does a bank reconciliation statement help you identify?

A

Discrepancies between your records and the bank's records

B

The amount of interest earned on your account

C

Your credit score

D

Your total account balance

correct option: a
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3

Why is a bank reconciliation statement important?

A

It helps ensure that your account is accurate and up-to-date

B

It helps the bank keep track of your spending habits

C

It helps the government monitor your financial activity

D

It helps you earn more interest on your savings

correct option: a
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4

What types of discrepancies can a bank reconciliation statement help you identify?

A

Deposits or withdrawals that have not yet cleared, bank fees or charges that you may not have recorded, or errors in your records

B

Cash withdrawals that you forgot to record, bank holiday schedules, or ATM fees

C

Credit card transactions, mortgage payments, or utility bills

D

None of the above

correct option: a
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5

What can happen if there are discrepancies between your records and the bank's records?

A

A higher credit score

B

Higher interest rates on your account

C

Overdrafts bounced checks, or other issues

D

None of the above

correct option: c
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6

What is the purpose of a bank reconciliation statement?

The purpose of a bank reconciliation statement is to compare your records of bank account transactions with the records held by your bank to identify any discrepancies.

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7

What types of discrepancies can a bank reconciliation statement help you identify?

A bank reconciliation statement can help you identify discrepancies such as deposits or withdrawals that have not yet cleared, bank fees or charges that you may not have recorded, or errors in your records.

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