Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Bank Reconciliation

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Multiple Choice

Which of the following is the process of comparing your own accounting records to the records provided by your bank?

Accrual Accounting

Depreciation

Bank Reconciliation

Trial Balance

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Verified step by step guidance

Understand the concept of Bank Reconciliation: Bank Reconciliation is the process of comparing your own accounting records (such as your cash ledger) to the records provided by your bank (such as the bank statement) to ensure accuracy and identify discrepancies.

Identify the purpose of Bank Reconciliation: The goal is to ensure that the cash balance in your accounting records matches the balance reported by the bank, accounting for any outstanding checks, deposits in transit, or bank fees.

Differentiate Bank Reconciliation from other terms: Accrual Accounting refers to recording revenues and expenses when they are incurred, not when cash is exchanged. Depreciation is the allocation of the cost of an asset over its useful life. Trial Balance is a summary of all ledger accounts to check the accuracy of debits and credits.

Recognize the importance of Bank Reconciliation: It helps detect errors, fraud, or unauthorized transactions and ensures the financial statements are accurate.

Apply the concept: When performing Bank Reconciliation, you would start by comparing the opening balances, then adjust for outstanding checks, deposits in transit, and any bank fees or errors to reconcile the two records.