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 document is primarily used to validate the bank and credit card account balances reported on a company's balance sheet?

Trial balance

Cash flow statement

Bank reconciliation statement

Income statement

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Verified step by step guidance

Understand the purpose of the bank reconciliation statement: It is a document used to compare the company's records of cash and credit card transactions with the bank's records to ensure accuracy and identify discrepancies.

Recognize that the trial balance is a summary of all ledger accounts and does not directly validate bank balances. It is used to check the mathematical accuracy of the accounting records.

Note that the cash flow statement provides information about cash inflows and outflows but does not directly reconcile or validate the bank account balances.

Understand that the income statement reports a company's revenues and expenses over a period but does not deal with reconciling bank balances.

Conclude that the bank reconciliation statement is the correct document for validating the bank and credit card account balances reported on the company's balance sheet, as it ensures the accuracy of these balances by comparing them with the bank's records.