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 identified during a bank reconciliation would require an adjustment to the book balance?

Bank service charges

Outstanding checks

Bank errors

Deposits in transit

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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 book balance to identify discrepancies and ensure accuracy in financial records.

Identify the items listed in the problem: Bank service charges, outstanding checks, bank errors, and deposits in transit. Determine which of these items affect the book balance and require adjustments.

Analyze each item: Bank service charges are fees charged by the bank and are not recorded in the company's books until identified during reconciliation. These require an adjustment to the book balance.

Consider the other items: Outstanding checks are checks issued by the company but not yet cleared by the bank. These do not require adjustments to the book balance, as they are already recorded in the company's books. Deposits in transit are deposits made by the company but not yet reflected in the bank statement. These also do not require adjustments to the book balance.

Evaluate bank errors: Bank errors may require adjustments to the book balance if the error affects the company's financial records. However, this depends on the nature of the error and whether it impacts the book balance directly.