Accounting - Study Mode
[#1566] Which of the following items is not taken in to account while computing Current Ratio?
Correct Answer
(C) Furniture
[#1567] Bank Reconciliation statement is the comparision of a bank statement (sent by bank) with the
Correct Answer
(C) Cash book
Explanation
Solution: Bank Reconciliation statement is the comparision of a bank statement (sent by bank) with the Cash book. In other words, the balance shown in the Pass Book given by the bank should tally with the balance of Bank Account Kept in his ledger or Cash Book (Bank Column).
[#1568] A cheque returned by bank marked "NSF" means that
Correct Answer
(B) There are not sufficient funds in your account
Explanation
Solution: A cheque returned by bank marked "NSF" means that There are not sufficient funds in your account. Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a cheque cannot be honored because insufficient funds are available in the account on which the instrument was drawn.
[#1569] Bank Reconciliation statement is prepared by
Correct Answer
(A) Accountant of business
Explanation
Solution: Bank Reconciliation statement is prepared by Accountant of business. Bank reconciliation statement is generally prepared by the company accountant or the bookkeeper with the purpose to compare the bank's records with your own company records. It is done on monthly basis whenever bank statement arrives.
[#1570] Unpresented cheques are also referred to as
Correct Answer
(C) Outstanding cheques
Explanation
Solution: Unpresented cheques are also referred to as Outstanding cheques. An unpresented check is a check written by a company and entered in its records, but the check has not yet cleared the company's checking account. In other words, the check has not yet been paid by the bank on which the check is drawn. An unpresented check is also known as an outstanding check.