Podcast
Questions and Answers
The balances per bank and per book are separately determined using the ______ method.
The balances per bank and per book are separately determined using the ______ method.
adjusted
Monthly preparation of bank reconciliation assists in the regular monitoring of ______ flows of a business.
Monthly preparation of bank reconciliation assists in the regular monitoring of ______ flows of a business.
cash
Methods of adjusting bank reconciliation include the bank to ______ method.
Methods of adjusting bank reconciliation include the bank to ______ method.
book
Upon receipt of the bank statement, the company will typically ______ the statement.
Upon receipt of the bank statement, the company will typically ______ the statement.
Signup and view all the answers
A ______ teller machine can withdraw funds anytime.
A ______ teller machine can withdraw funds anytime.
Signup and view all the answers
It is normal for a company's bank balance as per accounting records to differ from the balance as per ______.
It is normal for a company's bank balance as per accounting records to differ from the balance as per ______.
Signup and view all the answers
Amounts already received and recorded by the company, but are not yet recorded by the ______.
Amounts already received and recorded by the company, but are not yet recorded by the ______.
Signup and view all the answers
Checks that have been written and recorded in the company's cash account but have not yet ______.
Checks that have been written and recorded in the company's cash account but have not yet ______.
Signup and view all the answers
The bank statement shows charges which can include service fees or ______ for maintaining the checking account.
The bank statement shows charges which can include service fees or ______ for maintaining the checking account.
Signup and view all the answers
During the month of August, the company wrote checks totaling more than ______.
During the month of August, the company wrote checks totaling more than ______.
Signup and view all the answers
Study Notes
Bank Reconciliation
- A bank reconciliation statement compares the balance per company records and the bank's recorded balance.
- Discrepancies often due to time lags or errors.
- Reconciling items can be deposits in transit, outstanding checks, or errors.
- Preparing bank reconciliations helps identify errors and monitor cash flow.
- Reconciling items are necessary for an accurate cash balance.
Bank Reconciliation Steps
- Compare the balance per bank statement and per books.
- Identify and categorize reconciling items:
- Deposits in transit: Deposits recorded by the company but not yet by the bank.
- Outstanding checks: Checks written by the company but not yet cashed by the bank.
- Errors: Errors by the company or the bank.
- Adjust the balance per book to reflect the correct balance per bank statement.
- Reconcile the two balances to ensure they are equal.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the essential steps and concepts involved in bank reconciliation. It addresses how to compare bank statements with company records and the importance of identifying discrepancies such as deposits in transit and outstanding checks. Understanding these steps is crucial for accurate cash flow management and financial accounting.
