Multiple Choice
When you deposit a check using a mobile banking app, for how long should you typically keep the physical check before destroying it?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Why is it important to review your checking account statement during the bank reconciliation process?
A
To automatically update your checkbook register
B
To avoid paying taxes on your account balance
C
To identify errors or unauthorized transactions that may require correction
D
To increase the interest rate on your account
Verified step by step guidance1
Understand the purpose of bank reconciliation: Bank reconciliation is the process of comparing your checking account statement with your own records (e.g., checkbook register) to ensure accuracy and identify discrepancies.
Review the checking account statement: Carefully examine the transactions listed on the statement, including deposits, withdrawals, and fees, to ensure they match your records.
Identify errors or unauthorized transactions: Look for any discrepancies, such as incorrect amounts, duplicate charges, or transactions you did not authorize. These may require correction or further investigation.
Update your checkbook register: Adjust your records to reflect any legitimate transactions that were missing or incorrectly recorded in your checkbook register.
Contact the bank if necessary: If you find errors or unauthorized transactions, notify your bank promptly to resolve the issue and prevent further problems.
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