Chapter#3B: Reconciling the Bank Account Flashcards Preview

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Flashcards in Chapter#3B: Reconciling the Bank Account Deck (9)
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1

What is Bank Reconciliation?

it allows companies to verify that the company's bank account is accurate

2

What is a Bank Reconciliation Statement?

its used to account for all outstanding deposits, outstanding checks, bank charges, automatic monthly payments, bank errors and items omitted from the company's books

3

What is one reason for doing Bank Reconciliation?

Because Banks can make mistakes

4

What 2 Journals do you use to reconcile your bank account?

Cash Receipts and Cash Disbursements

5

What is the first step in reconciling the bank account?

to record the balances from the bank statement and general ledger bank account on the bank reconciliation statement

6

What is Outstanding Deposits

It's when all deposits recorded in the cash receipts journal haven't been deposited in the bank account

7

What is Outstanding Checks?

its when all checks have been written and are recorded in your Cash Disbursements Journal but do not appear on the Bank Statement

8

When does Outstanding Checks occur?

when the payee has not cashed or deposited the check in their bank account

9

What Items must be recorded in the General Ledger account since they have not been recorded?

the items listed on the right side of the bank reconciliation statement