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 typically included in a bank statement provided by the bank?

A reconciliation of the company's cash book balance

A detailed record of outstanding checks not yet cleared by the bank

A list of all deposits and withdrawals recorded by the bank during the period

A summary of the company's internal petty cash transactions

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Verified step by step guidance

Step 1: Understand the purpose of a bank statement. A bank statement is a document provided by the bank that summarizes the activity in a customer's account over a specific period. It is used to reconcile the company's cash book balance with the bank's records.

Step 2: Analyze the options provided in the question. The options include: (1) A reconciliation of the company's cash book balance, (2) A detailed record of outstanding checks not yet cleared by the bank, (3) A list of all deposits and withdrawals recorded by the bank during the period, and (4) A summary of the company's internal petty cash transactions.

Step 3: Eliminate incorrect options. Option (1) is incorrect because the reconciliation of the company's cash book balance is typically performed by the company, not the bank. Option (2) is incorrect because the bank does not provide a detailed record of outstanding checks; this information is tracked by the company. Option (4) is incorrect because petty cash transactions are internal to the company and not included in the bank statement.

Step 4: Focus on the correct option. Option (3) is correct because a bank statement typically includes a list of all deposits and withdrawals recorded by the bank during the period. This information helps the company reconcile its cash book balance with the bank's records.

Step 5: Conclude that the correct answer is the option that aligns with the purpose of a bank statement, which is to provide a detailed record of deposits and withdrawals made during the period.