Nostro accounts are not similar to deposit accounts— these demand deposit accounts are held in the currency of bank A’s existence, whereas Nostro account holds the balance in the currency of bank Q’s presence. Elaborate and explain Nostro, Vostro and Loro accounts with suitable illustration.

Q: The following are the reasons for dissimilarity between balances in the bank statement and the cash…

A: Dissimilarity between bank statement and cash book occurs due to various factors like Dishonored…

Q: Basic bank services do not include: Multiple Choice Checking. Bank deposits. Bank accounts. Cash…

A: A bank is a financial institution that is authorized to accept deposits, and advance loans. Further…

Q: Which of the following adjusts the bank's balance of cash in a bank reconciliation?  (More than one…

A: >Bank reconciliation statement, is a statement prepared on a particular date, to reconcile the…

Q: If the balance shown in the bank statement is less than the correct cash balance and neither the…

A: A bank reconciliation statement (BRS) refers to a statement drawn up by the business to verify the…

Q: Why is it important to prepare a bank reconciliation?

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: The host of payment services offered by Banks do not include the following: O a. Cheque facility O…

A: The general service which are offered by a bank to all the customer are banking transaction of…

Q: bank reconciliation is   Question 4 options:   a part of double entry system   not a part of…

A: Answer:- correct option is*  not a part of double entry system

Q: Which of the following statements about a forged drawer's signature on a check is true? A.)   A…

A: A forged drawer’s signature represents the instrument or checks to contain the forged signature of…

Q: Would charges for some other company's safe deposit box that were posted to your account be added to…

A: Bank reconciliation: Bank statement is prepared by the bank. The company maintains its own records…

Q: Bank rates on credit card balances are usually similar to the rate charged on business loans.…

A: A credit card's interest rate, often known as a 'financing charge,' is the rate levied by credit…

Q: Which one of the following is not considered as cash? a. Credit card. b. Debit Card c. Bank…

A: Debit card is used to make online payment.

Q: Banks deal exclusively with documents means that they are not in a position to verify whether the go…

A: Banks often have to verify if the goods supplied are identical or not as per the specifications.…

Q: Banks sometimes loan cash under noninterest-bearing notes. Is it true that banks lend money without…

A: Noninterest – bearing Notes Noninterest-bearing notes are those notes or bonds that are with no…

Q: Which of the following statements about a forged drawer's signature on a check is true? a.)   A…

A: The answer for the multiple choice question and relevant working are presented hereunder : A check…

Q: In sap, Which of the following outgoing payments will not require manual entry of bank account? a.…

A: A financial transaction is an agreement or communication between a buyer and a seller to exchange…

Q: 7. Which statement is true?    a. Bank service charge will cause the cash balance per ledger to be…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…

Q: a bank that meets a deposit withdrawal by selling t-bills will alter: neither the asset nor…

A: Selling T-bills will alter asset side and meeting a deposit withdrawal will alter liability side.

Q: Another way to describe account reconciliation is bank reconciliation—the process of bringing the…

A: A bank reconciliation statement is prepared by almost every organization at a particular time. It is…

Q: Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You…

A: Bank reconciliation is the statement which is used to reconcile the bank balance as per cash book…

Q: Which of the following reconciling items may not result from bank side reccords of a bank account?

A: The financial statement which records the amount differences between bank statement and bank account…

Q: If the balance shown on a company’s bank statement is less than the correct cash balance and neither…

A: Bank reconciliation statement is a statement used to match the balance of money reported on the…

Q: NSF results in a bank crediting one’s account. True or false

A: Non-sufficient funds in banking terms means that there is not enough money in the account to pay the…

Q: What is “Deposit in transit” in bank reconciliation?   Select one: A. Subtracted From the Cash…

A:

Q: Which one of the following is not considered as cash? a. None of these b. Credit card. c. Coins and…

A: Cash & Cash Equivalents: The line item on the balance sheet that represents the value of a…

Q: Which of the following decreases a company’s cash balance? deposits in transit bank deposit slips…

A: Bank reconciliation is a process of matching the balance of cash as per the cash book of an…

Q: Understanding bank account controls Answer the following questions about the controls in bank…

A: 1.Signature card is used to ensure that particular person is an authorized official towards signing…

Q: A bank reconciliation should be prepared Oa. to explain any difference between the company's balance…

A: Bank Reconciliation: A statement known as Bank reconciliation statement is prepared periodically for…

Q: When preparing a bank reconciliation, adjustments are made to the bank side and not the ledger…

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: What if the drawee bank failed to determine right away that the CHECK is supposed to be dishonored…

A: Cheque bounce is a criminal offence under Section 138 of the Act, for which the payee can file a…

Q: When an entity's bank account in the general ledger has a credit balance, this means that the entity…

A: Normally all assets of the business have debit balance and all liabiliites have credit balance.…

Q: Select the banking terms from drop down to match with the correct definition. Definitions…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which one of the following is true of a signature​ card?         A. It is the same as a deposit…

A: Solution: A signature card is a document that a bank kept it with the signatures of all the…

Q: Bank overdrafts are generally reported as:   Question 9 options:   a non-current asset.   a…

A: 9. Bank overdraft is the liability for the business which is payable within 12 months. Hence the…

Q: Which of the following statements is false? a. Legally restricted bank deposits held as compensating…

A: Cash and Cash Equivalents Here is related to the Cash and its Equivalents which are relation with…

Q: Which cash reconciling item could potentially affect either the bank statement or the general…

A: The bank reconciliation statement is prepared to match the balance of cash book and pass book.

Q: Which of the following is a bank account from which a company transfers funds from a master account…

A: The banks require funds for the settlements of the accounts, cheques clearance, and other payments.…

Q: A cash payment under a good control system will have. a. Too much amount Bank book balance b.…

A: The concept of segregation of duties refers to the need for more than one person to execute a task.

Q: Which one of the following items requires an adjustment on the bank side of the bank​…

A: An error on the bank side or any omission in the bank statement requires an adjustment on the bank…

Q: Which of the following statements is not correct? (1) Bank charges are not zero-rated item. (2)…

A: Taxable income: It is the part of the income on which tax is calculated that is to be paid to…

Q: R FALSE? Material overdraft in one bank must be deducted from the another bank's acco

A: Bank overdraft is a negative cash balance where the bank has extended credit when the accountholders…

Q: Which of the following adjusts the bank’s balance of cash in a bank reconciliation? a. NSF checks.…

A: Bank statement is prepared by bank. The company maintains its own records from its perspective. This…

Q: Which one of the following statements is true? a.Good cash management practices dictate that a…

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: Which of the following will NOT require an adjusting entry when reconciling the bank statement? O…

A: Bank reconciliation is a statement prepared to match bank account balance as per cash book and bank…

Q: Which of the following is not considered cash for financial reporting purposes? a. Petty cash and…

A: according to the rule, because you have posted multiple questions, we will answer the first question…

Q: For the merchant, bank credit card sales are treated in a manner similar to? Cash Sales?

A: Cash Sales means sales made in return for consideration in the form of cash and cash equivalents…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.