Chapter Nine- Bank Reconciliations

Question 1

Bank Reconciliation Statement

Answer 1

A statement reconciling the bank statement balance to the corrected cash book balance

Question 2

Counter Credit

Answer 2

Cash and cheques paid into the business’ bank account at the bank’s counter by someone from the business

Question 3

Dishonoured Cheque

Answer 3

Cheque that is paid into a business’ bank account and then is returned by the drawer’s bank unpaid

Question 4

Faster Payments

Answer 4

A system that allows customers to make small and medium-sized payments online and almost instantaneously

Question 5

Outstanding Lodgements

Answer 5

Cheques that have been received and recorded in the cash book (debit side) but have not yet appeared on the bank statements

Question 6

Unpresented Cheques

Answer 6

Cheque payments that have been recorded in the cash book (credit side) but have not yet appeared on the bank statements