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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is added to the bank balance in a bank reconciliation?

Outstanding checks

NSF (non-sufficient funds) checks

Bank service charges

Deposits in transit

Previous problemNext problem

Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process used to match the bank statement balance with the company's cash account balance, identifying any discrepancies.

Identify the items that affect the bank balance: Items such as deposits in transit and outstanding checks are adjustments made to the bank balance because they are not yet reflected in the bank statement.

Define deposits in transit: These are deposits made by the company that have not yet been processed or recorded by the bank. Since they are not included in the bank's balance, they need to be added to the bank balance during reconciliation.

Analyze the other options: Outstanding checks are subtracted from the bank balance because they represent payments issued by the company but not yet cleared by the bank. NSF checks and bank service charges are adjustments to the company's books, not the bank balance.

Conclude that deposits in transit are added to the bank balance during reconciliation because they represent funds that the company has deposited but the bank has not yet recorded.