Chapter 6

Question 1

Why might you use a suspense account for the disposal of a van?

Answer 1

As it is not a regular transaction, the computerised system is unlikely to match it

Question 2

An overdraft is a ____ balance in the bank statement

Answer 2

Debit

Question 3

What three things are included in the reconciliation of the bank transaction report balance to the corrected cash at bank account balance?

Answer 3

Unpresented cheques
Bank errors
Uncredited lodgements

Question 4

Error of commission

Answer 4

When one side of a transaction has been recorded in the wrong account, and that account is of the same class as the correct account