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

After you reconcile your bank statement, which of the following actions should you take?

Record any necessary adjustments in your accounting records

Ignore any discrepancies found during reconciliation

Send the reconciled statement to the bank for approval

Destroy the bank statement for confidentiality

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Verified step by step guidance

Understand the purpose of bank reconciliation: Bank reconciliation is the process of comparing your accounting records with the bank statement to identify discrepancies and ensure accuracy in your financial records.

Identify discrepancies: During reconciliation, you may find differences such as outstanding checks, deposits in transit, or bank fees that are not yet recorded in your accounting system.

Determine necessary adjustments: Based on the discrepancies identified, decide which adjustments need to be made in your accounting records. For example, record bank fees, interest income, or correct errors in your books.

Update your accounting records: Make the necessary journal entries to reflect the adjustments identified during the reconciliation process. This ensures your books are accurate and match the bank statement.

Retain the reconciled statement: Keep the reconciled bank statement for your records as part of your financial documentation. It is not necessary to send it to the bank or destroy it; it serves as evidence of the reconciliation process.