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 is it important to review your bank statement each month?

To identify errors or unauthorized transactions and ensure your records match the bank's records.

To automatically reconcile your books without any manual effort.

To increase the interest rate on your account.

To avoid paying taxes on your bank balance.

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Verified step by step guidance

Understand the purpose of reviewing a bank statement: It helps ensure that your financial records align with the bank's records, which is crucial for accurate accounting and financial management.

Identify potential errors: Reviewing your bank statement allows you to spot any discrepancies, such as incorrect charges, duplicate transactions, or missing deposits.

Detect unauthorized transactions: Regularly checking your bank statement helps you identify any fraudulent or unauthorized activity on your account, enabling you to take corrective action promptly.

Reconcile your books: Comparing your bank statement with your own financial records ensures that your accounting books are accurate and up-to-date, which is essential for financial reporting and decision-making.

Understand what reviewing a bank statement does NOT accomplish: It does not automatically reconcile your books, increase your interest rate, or help you avoid paying taxes. These are unrelated to the purpose of reviewing a bank statement.