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

Why does Mara use her checkbook register to keep track of her ATM withdrawals?

Because ATM withdrawals are automatically excluded from her bank statement

Because the bank requires her to submit a register for every withdrawal

To calculate the interest earned on her checking account

To ensure her personal records match the bank statement and to avoid overdrawing her account

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Verified step by step guidance

Understand the purpose of a checkbook register: A checkbook register is a tool used to record all transactions related to a checking account, including deposits, withdrawals, checks written, and ATM transactions.

Recognize the importance of tracking ATM withdrawals: ATM withdrawals are immediate deductions from the account balance, and keeping track of them ensures that the account holder is aware of their current available balance.

Learn why personal records are necessary: Banks provide statements periodically, but they may not reflect real-time transactions. By maintaining a checkbook register, Mara can ensure her personal records align with the bank's statement.

Understand the risk of overdrawing: Without accurate tracking, Mara might spend more than her available balance, leading to overdraft fees or declined transactions. The register helps her avoid this situation.

Connect the reasoning to the correct answer: Mara uses her checkbook register to ensure her personal records match the bank statement and to avoid overdrawing her account, as this provides a clear and accurate picture of her financial activity.