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

In which of the following scenarios would you record a bank deposit transaction in the accounting records?

When a customer pays cash for goods and the cash is deposited into the company's bank account

When a company issues a note payable to a lender

When a company writes a check to pay a supplier

When a bank charges a monthly service fee

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Verified step by step guidance

Step 1: Understand the concept of a bank deposit transaction. A bank deposit transaction is recorded when cash is received and deposited into the company's bank account. This typically involves an inflow of cash that increases the company's bank balance.

Step 2: Analyze each scenario provided in the problem to determine if it involves a bank deposit transaction. For example, when a customer pays cash for goods and the cash is deposited into the company's bank account, this qualifies as a bank deposit transaction because it involves receiving cash and depositing it.

Step 3: Evaluate the other scenarios. When a company issues a note payable to a lender, this is a liability transaction and does not involve depositing cash into the bank. Similarly, when a company writes a check to pay a supplier, this is a cash outflow and does not qualify as a bank deposit transaction.

Step 4: Consider the scenario where a bank charges a monthly service fee. This is an expense transaction and involves a deduction from the bank account, not a deposit.

Step 5: Conclude that the correct scenario for recording a bank deposit transaction is when a customer pays cash for goods and the cash is deposited into the company's bank account. This is the only scenario that involves an inflow of cash being deposited into the bank.