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

When preparing a bank reconciliation, under which circumstance must you sign a deposit slip?

When making a deposit at the bank to verify the transaction

When reconciling outstanding checks on the bank statement

When adjusting for bank service charges in the ledger

When recording interest earned in the cash book

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Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process to ensure that the company's cash records match the bank's records, identifying discrepancies such as outstanding checks, deposits in transit, or bank service charges.

Review the options provided in the problem and identify the context of signing a deposit slip. A deposit slip is typically signed when making a deposit at the bank to verify the transaction.

Clarify the role of a deposit slip: It serves as proof of the deposit made and is signed to confirm the accuracy of the transaction details, such as the amount deposited and the account number.

Eliminate the other options: Signing a deposit slip is not required when reconciling outstanding checks, adjusting for bank service charges, or recording interest earned, as these activities involve internal record-keeping rather than direct interaction with the bank.

Conclude that signing a deposit slip is specifically tied to the act of making a deposit at the bank to verify the transaction, ensuring the deposit is accurately recorded by the bank.