Chapter 8 - Bank Reconciliation

Question 1

Checks the agency has issued and recognized but which have not yet been presented to the bank for payment.

a. returned checks
b. cancelled checks
c. outstanding checks
d. credit memorandum

Answer 1

C

Question 2

Authority issued by the DBM to central, regional and provincial offices and operating units to cover the cash requirements of the agency.

a. credit memorandum
b. debit memorandum
c. notice of cash allocation
d. authorized spending

Answer 2

C

Question 3

Settlement of differences contained in the bank statement and the cash account in the agency’s/entity’s books of accounts.

a. bank charges
b. bank statement
c. bank reconciliation
d. debit and credit memorandum

Answer 3

C

Question 4

Checks issued and chargeable to the agency bank account but was later voided due to expiration of validity, and other valid reasons.

a. returned checks
b. cancelled checks
c. outstanding checks
d. credit memorandum

Answer 4

B

Question 5

Document issued by the bank informing an increase in the depositor’s (Agency’s/Entity’s) account, such as previous bank debit errors and collection directly deposited to the agency’s/entity’s bank account.

a. debit memorandum
b. cancelled checks
c. outstanding checks
d. credit memorandum

Answer 5

D

Question 6

Document issued by the bank informing a decrease in the account, such as previous bank credit errors or service charges and fees.

a. debit memorandum
b. cancelled checks
c. outstanding checks
d. credit memorandum

Answer 6

A

Question 7

The Chief Accountant shall submit the BRS within twenty days after receipt of the monthly BS to the following:

a. COA Auditor
b. Head of Agency/Entity
c. Accounting Division/Unit file
d. all of the above

Answer 7

D

Question 8

The Bank Reconciliation Statement (BRS) shall be prepared in order to:

a. Check correctness of both the bank’s and agency’s/entity’s records
b. Serve as a determent to fraud
c. Enable the agency/entity or bank to take up charges or credits recognized by the bank or agency/entity but not yet known to the agency/entity or bank
d. Help the COA Auditor
e. a, b, and c

Answer 8

E

Question 9

Who shall prepare a JEV to recognize all reconciling items that require adjustment and correction in the books of accounts?

a. COA Auditor
b. Chief Accountant
c. Designated Staff
d. COA Auditor or Chief Accountant
e. Chief Accountant or Designated Staff

Answer 9

E

Question 10

Who shall review and approve the BRS?

a. COA Auditor
b. Chief Accountant
c. Designated Staff
d. COA Auditor or Chief Accountant
e. Chief Accountant or Designated Staff

Answer 10

B