Bank Reconciliation Quiz

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Download our mobile app to listen on the go

Get App

To calculate the company's total revenue and expenses
To determine the company's tax liabilities
To reconcile differences in employee payroll records
To ensure the company's cash account in the general ledger aligns with the bank statement (correct)

Deposits that are lost in transit between different bank branches
Deposits made and immediately processed by the bank
Deposits made and recorded by the bank but not yet recorded by the company
Deposits made and recorded by the company but not yet recorded by the bank (correct)

To account for checks issued by the company but not yet presented to the bank for payment (B) Signup and view all the answers

Fees charged by the bank for maintaining the company's account (C) Signup and view all the answers

To ensure the company's cash account in the general ledger aligns with the bank statement (D) Signup and view all the answers

Deposits made by the company but not yet appearing on the bank statement (C) Signup and view all the answers

Checks received by the company but bounced due to insufficient funds (A) Signup and view all the answers

To ensure that all checks issued by the company and recorded have been presented for payment (A) Signup and view all the answers

Service charge (C) Signup and view all the answers

Flashcards are hidden until you start studying

The primary purpose of bank reconciliation is to identify and explain the differences between the company's cash records and the bank's cash records.

Items on the bank side of a typical bank reconciliation include:
- Service charges
- NSF (nonsufficient funds) checks
- Bank corrections

Deposits in transit refer to customer deposits that have been recorded by the company but have not yet been recorded by the bank.
The significance of deposits in transit in bank reconciliation is to ensure that these deposits are accounted for and matched with the bank's records.

The purpose of reconciling outstanding checks in bank reconciliation is to identify and account for checks that have been written but have not yet cleared the bank.
Reconciling outstanding checks helps to ensure that the company's cash records are accurate and up-to-date.