1.In a bank reconciliation statement, how is a 'Deposit in transit' typically treated?
2.A bank reconciliation statement involves comparing the bank's statement with which document maintained by the business?
3.What does a favorable cash book balance indicate?
4.A bank charge of $5000 was omitted from the cash book entry. What is the appropriate correction to be made in the cash book?
5.Who is responsible for preparing the bank reconciliation statement?
6.What does it indicate when a bank returns a check marked as “NSF”?
7.When a business deposits cash, how is this transaction recorded on the bank statement?
8.What is the primary purpose of accommodation bills?
9.X issues a Bill of Exchange to Y amounting to 10,000 on January 1, 2013, with a term of three months. What is the maturity date of this bill?
10.Which of the following is not a mandatory element of a promissory note?
11.In what form is a foreign bill of exchange typically prepared?
12.Which of the following is not a mandatory characteristic of a bill of exchange?
13.In which year was the Negotiable Instruments Act established?
14.Typically, how many parties are involved in a Bill of Exchange?
15.Which of the following characteristics does NOT apply to a promissory note?
16.In which of the following cases is no journal entry recorded in the drawer's books?
17.When recording transactions related to a trade bill, the drawer makes the usual accounting entries. However, for an accommodation bill, an extra entry is required. What does this additional entry pertain to?
18.Who is responsible for paying the noting charges imposed by the Notary Public when an endorsed bill is dishonoured?
19.When a bill of exchange is received and accepted by the drawee, what is the correct accounting entry recorded in the drawer's books?
20.What entry is made in the drawer's books when a bill discounted with the bank is dishonored?