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

How do banks help businesses control cash?

By providing monthly bank statements that allow businesses to reconcile their records

By guaranteeing that all checks issued by the business will never be lost or stolen

By automatically recording all business expenses in the company's accounting system

By offering services such as electronic funds transfers and lockbox arrangements

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Verified step by step guidance

Understand the role of banks in helping businesses manage cash effectively. Banks provide tools and services that enhance cash control and streamline financial operations.

Recognize that monthly bank statements are a key service provided by banks. These statements allow businesses to reconcile their internal records with the bank's records, ensuring accuracy and identifying discrepancies.

Learn about electronic funds transfers (EFTs). EFTs enable businesses to transfer money electronically, reducing the need for physical checks and improving security and efficiency in cash management.

Understand lockbox arrangements. A lockbox is a service where customers send payments directly to a bank-managed location, allowing businesses to process incoming cash more quickly and securely.

Note that banks do not guarantee that checks will never be lost or stolen, nor do they automatically record all business expenses in the company's accounting system. These are responsibilities of the business itself, not the bank.