Multiple Choice
When confirming accounts payable during a bank reconciliation, which of the following procedures is most appropriate?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
An easy way to avoid ending up with errors in your checking account is to simply:
A
ignore small discrepancies in your account balance
B
write checks without recording them
C
regularly reconcile your checkbook with your bank statement
D
rely solely on the bank's online balance without keeping your own records
Verified step by step guidance1
Understand the concept of reconciling a checkbook: Reconciling your checkbook involves comparing your personal records of transactions (checks written, deposits made, etc.) with the bank's statement to ensure accuracy and identify any discrepancies.
Recognize the importance of reconciliation: Regular reconciliation helps you catch errors, unauthorized transactions, or forgotten entries, ensuring your financial records are accurate and up-to-date.
Learn the process of reconciliation: Start by gathering your checkbook register and the bank statement. Match each transaction in your checkbook with the corresponding entry in the bank statement.
Account for outstanding transactions: Identify any checks or deposits that have not yet cleared the bank. These should be noted to ensure your checkbook balance aligns with the bank's balance.
Adjust for discrepancies: If you find any differences, investigate the cause. It could be due to bank fees, errors, or forgotten transactions. Update your checkbook register accordingly to maintain accurate records.
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