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 items are typically included in the preparation of a bank reconciliation statement?

Accrued interest and unearned revenue

Depreciation expense and prepaid insurance

Inventory shrinkage and cost of goods sold

Outstanding checks and deposits in transit

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Verified step by step guidance

Understand the purpose of a bank reconciliation statement: It is used to reconcile the differences between the bank's records and the company's cash account records, ensuring accuracy and identifying discrepancies.

Identify the key components typically included in a bank reconciliation statement: These are items that affect the bank balance or the company's cash account but have not yet been recorded by one party. Examples include outstanding checks and deposits in transit.

Define outstanding checks: These are checks issued by the company that have not yet been cleared or processed by the bank. They reduce the company's cash balance but are not yet reflected in the bank statement.

Define deposits in transit: These are deposits made by the company that have not yet been recorded by the bank. They increase the company's cash balance but are not yet reflected in the bank statement.

Exclude unrelated items: Items such as accrued interest, unearned revenue, depreciation expense, prepaid insurance, inventory shrinkage, and cost of goods sold are not relevant to the preparation of a bank reconciliation statement, as they do not directly impact the reconciliation of cash balances.