Monthly bank reconciliation is one of the internal control features in every company, which is created to show that there is no discrepancy between the cash balance per book records and the cash balance per bank records.
Determine if the statement is true or false.
1. Monthly bank reconciliation is one of the internal control features in every company, which is created to show that there is no discrepancy between the cash balance per book records and the cash balance per bank records.
2. Reciprocal accounts should have the same balance after all adjustments have been made.
3. Checks paid to the suppliers but not yet presented to the bank is one of the reasons why differences arise on reciprocal accounts.
4. Checks paid to the suppliers but not yet presented to the bank is one of the reasons why differences arise on reciprocal accounts.
5. Bills that are collected by the bank on behalf of the customer is one of the reasons why differences arise between reciprocal accounts.
6. Bank reconciliation statement is prepared by the account holder.
7. Bank reconciliation statement is prepared by the account holder.
8. A business receives a bank statement and updates its
9. Notes collected from the clients in the company’s behalf in a bank statement would cause the balance of the bank more than the balance of the book.
10. Certified checks should be deducted from the total outstanding checks (if included therein) because they are no longer outstanding for bank reconciliation purposes.
11. Book debits refer to book receipts or cash receipts or all items debited to the cash in bank account.
12. Book credits refer to cash disbursements or all items credited to the cash in bank account.
13. Bank credits refer to all items credited to the account of the depositor which include deposits acknowledged by bank and credit memos.
14. Bank debits refer to all items debited to the account of the depositor which include checks paid by bank and debit memos.
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