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 NOT a step in reconciling a bank statement?

Recording journal entries for bank service charges and interest earned

Preparing a budget for the next fiscal year

Identifying outstanding checks and deposits in transit

Comparing the bank statement balance with the company's cash account balance

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Verified step by step guidance

Understand the purpose of bank reconciliation: It is the process of ensuring that the company's cash account balance matches the balance reported by the bank in the bank statement.

Review the steps typically involved in reconciling a bank statement: These include comparing the bank statement balance with the company's cash account balance, identifying outstanding checks and deposits in transit, and recording journal entries for bank service charges and interest earned.

Analyze the options provided in the problem: Determine which activities are directly related to the reconciliation process and which are unrelated.

Recognize that preparing a budget for the next fiscal year is not part of the bank reconciliation process. Budget preparation is a separate financial planning activity and does not involve reconciling cash balances.

Conclude that the correct answer is 'Preparing a budget for the next fiscal year,' as it is unrelated to the steps involved in reconciling a bank statement.