When an entity's bank account in the general ledger has a credit balance, this means that the entity owes the bank money.    A. True  B. False

Q: efly explain about Basic Concepts of the Bank's Financial Statements.

A: Financial statements (or financial reports) are formal records of a business, individual, or other…

Q: A) Prepare a bank reconciliation for Finac Company using the above information B) Journalize any…

A: The financial statement being prepared by the management or accountant after receiving the bank…

Q: Which of the following should be recorded in Accounts Receivable? Select the correct response:…

A: Accounts Receivable (AR) seem to be the revenues or payments received by the firm from consumers who…

Q: 1. As contemplated in accounting, cash includes    a. Money only b. Money and any negotiable…

A: Solution:- Introduction:- As per contemplated in accounting, cash includes as follows:- checks bank…

Q: rder is an example of an adjusting difference. True or False Bank understates a deposit on the bank…

A: Adjusting differences are necessary in the account when there is mismatch between the debit and…

Q: Deposits in transit a. b. C. d. Select one: a. have been recorded on the company's books but not yet…

A: At the time of reconciliation of bank statement with company own books, there can be some…

Q: Net float is A. The difference between the amount of assets and liabilities. B. It is an account in…

A: The question is multiple choice question  Required  Choose the Correct Option

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: The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest…

A: Introduction: Interest: Interest is the amount charged on the principle amount. Interest is…

Q: At the time of submission for encashment the cheque has to be signed by: a. Both endorser and branch…

A: At the time of submission for encashment the cheque has to be signed by: Both endorser and branch…

Q: when a company establishes a credit line with a bank, it is the same as borrowing from the bank True…

A: Credit line is similar to taking a loan but in credit line loan is taken on a regular basis. There…

Q: b.It is used only when payment is made to an individual. c.It transfers title to the money.

A: option c is correct.  endorsement= transfer title to the money.

Q: The speculative motive is the need to hold cash      O a. To pay outstanding checks       b.…

A: There are many objectives of maintaining cash with company but there are speculation objectives also…

Q: Which of the following statements is false?(a) Receivables include equity securities purchased by…

A: Receivables refers to the amounts to be received within a short period from customers upon the sale…

Q: From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability.…

A: Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary…

Q: From a company’s point of view, which of the following statements best describes an “outstanding…

A: Outstanding check: When company issue the check to the vendor/creditors but they do not present the…

Q: Which one of the following statements is false? a. Consumer loans are loans banks advance to…

A: Solution:- Loans means the advances made by the bank to the customers, while deposits means the…

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: A company repays its bank borrowings.  The entry to record that transaction should be Group of…

A: Borrowing means where business taken loan from outsider to be used in business and repaid later.

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: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: Which adjustments need to be recorded in the accounting records? Those that affected the bank…

A: Introduction: All the paperwork and books used to create financial statements or records necessary…

Q: Assign the letter to indicate whether the following items would be added to or subtracted from the…

A: Bank Reconciliation: Bank Reconciliation statement is the statement that reconciles bank account…

Q: 1- Depositors are free to decide the frequency and amount of their transactions Group starts. True…

A: 1) False.  This is because the frequency and amount of transaction to be done is always decided and…

Q: Why must a balance sheet always balance? What are the major assets and claims on a commercial bank’s…

A: Balance sheet is called as statement of assets and liabilities. Liabilities represent claims of the…

Q: The bank or other financial institution where the cheque can be presented for payment. a. BDO b.…

A: BDO : Full form of BDO is bank development organization.  It works for the development of bank.…

Q: Explain how bills of endorsement work. Are they classified as Off-Balance-Sheet (OBS) assets or OBS…

A: An endorsement of bill is defined as the procedure through the bill holder or maker for bill…

Q: Each of the following documents is a control for a bank account excepta. signature card.b.…

A: For controlling a bank account, a bank statement, signature card and bank reconciliation statement…

Q: TRUE OR FALSE. If assignment of receivables is made under a notification basis, the company, the…

A: Assignment of accounts receivable is a loan agreement in which the borrower assigns the lender to…

Q: Would a bank service charge be added to or subtracted from the company's books or the bank statement…

A: Bank reconciliation: Bank reconciliation is a statement which is prepared to reconcile the cash…

Q: Which among the following is not a function of a bank? a. Issuing demand drafts b. Paying interest…

A: A BANK IS A FINANCIAL INSTITUTION LICENSED TO RECEIVE DEPOSITS AND MAKE LOANS . BANK ALSO PROVIDE…

Q: What are the three approaches in preparing bank statement

A: Answer: As per Q/A guidelines, only first question is to be answered. Please repost Q 2 to be…

Q: deposit function, the bank is the _____ and the depositors are the ______ a. drawee - payees b.…

A: Banks do many function for customers and the one of the main function is the deposits made by the…

Q: Which of the following journal entries is correct when a business entity uses cash to pay an account…

A: The journal entry is the initial reporting made to the books of accounts with regard to the…

Q: An entity to which money is owed is known as a debtor and such transactions will be recorded in the…

A: Answer: FALSE

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: Select TWO true statements about money. a. Base money is equal to cash plus commercial bank reserves…

A: Money: Money as a means of transaction is playing a significant role in today's world economy. Money…

Q: In a bank reconciliation, interest revenue earned on your bank balance isa. added to the book…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Q: Uncredited cheques are O Cheques issued by a business but not yet cashed out by creditors. Cheques…

A: Given: The definition of uncredited cheques is asked.

Q: Choose the function and service of a bank in which Bank Purchases and sells securities, shares and…

A: A bank provides different functions to its customers along with core banking services and some…

Q: A checking account is: OPTIONS: an asset to a commercial bank. a liability to a commercial bank. an…

A: A checking is a bank saving account which is opened with a commercial bank by a customer. He can…

Q: The difference between the balance shown on a firm's checkbook and the balance on the bank's records…

A: Float is the time of clearing cheque which is given by debtor to cash is defined as Float.

Q: hich of the following should be recorded in Accounts Receivable? Group of answer choices Receivables…

A: Accounts Receivable means the amount to be received from customers in respect of sales effected or…

Q: The bank statement issued by bank to its clients can be used as a source document for the following…

A: Source document is the primary and reliable evidence of a business transaction.

Q: Method of preparing bank reconciliation wherein the balance per bank and per book is separately…

A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with…

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.