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.
A ______ teller machine can withdraw funds anytime.
A ______ teller machine can withdraw funds anytime.
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 ______.
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 ______.
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 ______.
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.
During the month of August, the company wrote checks totaling more than ______.
During the month of August, the company wrote checks totaling more than ______.
Flashcards
Bank Reconciliation Method (Book to Bank)
Bank Reconciliation Method (Book to Bank)
Adjusting the company's book balance to match the bank balance.
Bank Reconciliation Method (Bank to book)
Bank Reconciliation Method (Bank to book)
Adjusting the bank statement balance to match the book balance of the company.
Adjusted Method
Adjusted Method
A reconciliation method used for adjusting bank balances where both book and bank methods are combined for reconciliation.
Difference in Bank and Book Balance
Difference in Bank and Book Balance
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Deposits in Transit
Deposits in Transit
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Outstanding Checks
Outstanding Checks
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Error in Bank Statement
Error in Bank Statement
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Bank Reconciliation
Bank Reconciliation
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Bank Statement
Bank Statement
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Book Balance
Book Balance
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Bank Reconciliation Statement
Bank Reconciliation Statement
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Reconciling items
Reconciling items
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Review bank statement
Review bank statement
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Automated Teller Machine (ATM)
Automated Teller Machine (ATM)
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Methods to adjust bank reconciliation
Methods to adjust bank reconciliation
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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.
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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.
