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

Given the following information to reconcile Branch Company's bank account, which of the following items should be added to the company's book balance during the bank reconciliation process?

Collections made by the bank on behalf of the company

Bank service charges

Deposits in transit

Outstanding checks

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Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process to ensure that the company's book balance matches the bank statement balance by accounting for timing differences and errors.

Identify the items provided in the problem: Collections made by the bank on behalf of the company, bank service charges, deposits in transit, and outstanding checks.

Determine the impact of each item on the company's book balance: Collections made by the bank increase the book balance, bank service charges decrease the book balance, deposits in transit do not affect the book balance (they are added to the bank balance), and outstanding checks do not affect the book balance (they are subtracted from the bank balance).

Focus on the item that should be added to the company's book balance: Collections made by the bank on behalf of the company represent cash inflows that the company has not yet recorded in its books, so this item should be added to the book balance.

Conclude that during the bank reconciliation process, collections made by the bank on behalf of the company are the item that should be added to the company's book balance.