- 1 Marks
Question
Which of the following bank statement items should NOT be added or subtracted from the cash book balance to determine the adjusted bank balance?
A. Bank service charges
B. Unpresented cheques
C. Direct transfer
D. Cash book error
E. Value added tax
Answer
B
Explanation:
Option B is correct because unpresented cheques are already recorded in the cash book and do not affect the adjusted balance until they are cleared by the bank.
- Tags: Adjustments, Bank Reconciliation, Cash Books
- Level: Level 1
- Topic: Bank reconciliations
- Series: NOV 2022
- Uploader: Theophilus