Interpretation of Bank Statements - SS1 Accounting Past Questions and Answers - page 1
What is a bank statement?
A summary of all the transactions in a bank account over a specific period
A report on the economic performance of a bank
A statement of the financial position of a bank
A statement issued by the government to banks
What does the beginning balance in a bank statement represent?
The amount of money in the account at the end of the statement period
The amount of money in the account at the start of the statement period
The amount of money deposited in the account during the statement period
The amount of money withdrawn from the account during the statement period
What are withdrawals in a bank statement?
The funds added to the account during the statement period
The funds taken out of the account during the statement period
The fees charged by the bank for account maintenance
The interest earned on the account during the statement period
What does a bank statement include?
Only the ending balance of the account
Only the transactions made in the account during the statement period
The beginning and ending balances, deposits, withdrawals, fees, and interest earned
The financial performance of the bank
What is the purpose of interpreting a bank statement?
To keep track of account activity and manage finances
To report unauthorized transactions to the bank
To check the financial performance of the bank
To dispute fees charged by the bank
What are deposits in a bank statement?
Deposits are the funds that have been added to the account during the statement period.
Why is it important to understand a bank statement?
It is important to understand a bank statement to keep track of account activity, manage finances, and ensure the accuracy of transactions.