Mr Lewis Knowledge Test

Question 1

Standing Order

Answer 1

Where a business instructs its bank to make fixed payments at regular intervals

Question 2

Direct Debit

Answer 2

where one business authorises another to take payments out of its bank account and the amount varies according to how much is owed

Question 3

Credit Transfer

Answer 3

Receipts or payments directly in or out of the bank account

Question 4

Debit Card Transactions

Answer 4

Payments made using a debit card. The bank statement will show the payee and the amount paid

Question 5

Dishonoured Cheque’s

Answer 5

Cheques that have been returned by the bank because there is not enough money in the account to make the payment

Question 6

Unpresented Payments and Receipts

Answer 6

Those that have been entered in the cash book but are not yet shown on the bank statement

Question 7

Outstanding

Answer 7

The same as ‘unpresented’

Question 8

Lodgements

Answer 8

Amounts that have been banked (i.e. receipts)