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 is the most effective way to reconcile your bank account to ensure you do not spend more than you have?

Only review your bank statement at the end of the year.

Rely solely on your bank's online balance without tracking your own transactions.

Assume all transactions are processed instantly and spend based on your last ATM receipt.

Regularly compare your checkbook register and bank statement, adjusting for outstanding checks and deposits.

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Verified step by step guidance

Understand the concept of bank reconciliation: Bank reconciliation is the process of comparing your personal financial records (e.g., checkbook register) with your bank statement to ensure accuracy and identify discrepancies.

Step 1: Regularly update your checkbook register with all transactions, including checks written, deposits made, and any fees or charges incurred.

Step 2: Obtain your bank statement, either online or in paper form, and review all transactions listed to ensure they match your checkbook register.

Step 3: Identify any outstanding checks (checks written but not yet cleared by the bank) and outstanding deposits (deposits made but not yet reflected in the bank statement). Adjust your checkbook register balance accordingly.

Step 4: Compare the adjusted checkbook register balance with the bank statement balance. Investigate and resolve any discrepancies, such as errors in recording transactions or unauthorized charges.