20 Questions
What does the left side of an account represent?
Debit side
Which type of bank account allows numerous withdrawals and unlimited deposits?
Checking/Current account
According to the information provided, what is a bank check?
An order written by a depositor instructing the bank to pay a specific amount to a recipient
What is one of the criteria that needs to be met before a check can be converted into cash?
The check date is dated on or before the balance sheet date
What does a bank statement show at the end of every month?
The movement of the account including withdrawals, deposits, and balance after every transaction
What is the function of the Journal?
Journalizing (Initial Recording)
Which type of journal is used to record sales on account?
Special Journal
What does the General Ledger contain?
All accounts appearing in the trial balance
What are the T-Account's three parts?
Debit, credit, balance
Where are transactions that cannot be recorded in special journals can be recorded?
In the General Ledger
What is the purpose of the signature of the depositor on a withdrawal slip?
To authorize the bank to take out money from the account
What is the main purpose of a bank reconciliation process?
To identify discrepancies in company records and prevent fraud
What is the specific function of a deposit slip for checks?
List checks individually and add up the deposited amounts
Which information is NOT required when filling out a withdrawal slip?
List of cash amount of deposit
What is the purpose of the reconciliation statement?
To compare bank statements to company records and identify discrepancies
What is the main difference between credit memos and debit memos?
Credit memos represent deposit credited by the bank to the account of the depositor, while debit memos represent items not representing checks paid by the bank and charged to the account of the depositor.
What is the distinguishing feature of certified checks for bank reconciliation purposes?
Certified checks should be deducted from the total outstanding checks for bank reconciliation purposes as they are no longer outstanding.
What do outstanding checks represent in the context of bank reconciliation?
Outstanding checks are checks already recorded by the depositor as cash disbursements but not yet reflected on the bank statement.
What is the primary characteristic of deposits in transit for bank reconciliation purposes?
Deposits in transit are collection already recorded by the depositor as cash receipts but not yet reflected on the bank statement.
What is the significance of an NSF or no sufficient fund check in bank reconciliation?
NSF or no sufficient fund checks are checks deposited but returned by the bank due to insufficiency of funds.
Learn about the functions, descriptions, and types of Journal and Ledger in accounting. Understand journalizing as the initial recording and posting as the classifying process in these books of account.
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