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

A bank reconciliation reconciles the bank statement with the company's:

Income statement

Inventory records

Accounts receivable balance

Cash account balance in the general ledger

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Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process used to compare the bank statement balance with the company's cash account balance in the general ledger to identify and resolve any discrepancies.

Identify the key components involved: The bank statement (provided by the bank) and the cash account balance (maintained in the company's general ledger). These two records must match after adjustments.

Review the bank statement for any transactions not recorded in the company's general ledger, such as bank fees, direct deposits, or interest income. These need to be added or subtracted from the cash account balance.

Check the company's general ledger for outstanding checks or deposits in transit that have not yet cleared the bank. These adjustments should be made to the bank statement balance.

After making all necessary adjustments to both the bank statement and the general ledger cash account, ensure that the adjusted balances match. This confirms the reconciliation is complete and accurate.