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 is typically found on the book side of a bank reconciliation?

Bank service charges

Deposits in transit

Outstanding checks

Errors made by the bank

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Verified step by step guidance

Understand the concept of bank reconciliation: Bank reconciliation is the process of comparing the bank statement with the company's accounting records to identify discrepancies and ensure accuracy.

Identify the two sides of a bank reconciliation: The 'bank side' includes items that affect the bank statement, such as deposits in transit and outstanding checks. The 'book side' includes items that affect the company's accounting records, such as bank service charges and errors made by the company.

Analyze each option provided: Deposits in transit and outstanding checks are adjustments made to the bank side because they represent timing differences between the bank and the company's records. Bank service charges and errors made by the company are adjustments made to the book side because they directly affect the company's accounting records.

Focus on the book side: Items typically found on the book side include bank service charges, errors made by the company, and any other adjustments that need to be recorded in the company's books to reconcile with the bank statement.

Conclude that the correct answer is 'Bank service charges,' as this is an item that affects the company's accounting records and is typically found on the book side of a bank reconciliation.