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

Why might you not be able to immediately use funds from a check that you just deposited into your checking account?

Banks do not require any verification for deposited checks.

Checks are always converted to cash immediately upon deposit.

The bank may place a hold on the check until it clears.

The check automatically increases your available balance instantly.

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Verified step by step guidance

Understand the concept of check clearing: When you deposit a check, the bank needs to verify that the funds are available in the account of the person or entity who issued the check. This process is known as 'check clearing.'

Learn about bank holds: Banks may place a temporary hold on the funds from a deposited check to ensure that the check clears successfully. This is a precautionary measure to avoid issues like bounced checks or insufficient funds.

Recognize the timeline for clearing: The clearing process can take a few business days, depending on the bank's policies and the type of check deposited. During this time, the funds may not be immediately available for use.

Understand exceptions: Some checks, such as government-issued checks or cashier's checks, may clear faster due to their reliability. However, personal checks often take longer to clear.

Review your bank's policies: Each bank has specific rules regarding holds and clearing times. It's important to familiarize yourself with these policies to manage your finances effectively.