Which of the following has incorrect treatment for the bank and book reconciling items assuming using adjusted balance method for bank reconciliation: a. Deposit in Transit or Undeposited collection should be added to the book in arriving at the correct cash balance b. Outstanding checks should be deducted from the bank balance c. Debit memos should be deducted from the balance per books in determining the correct cash balance d. Credit memos should be added to the cash balance per books in order to obtain the correct cash balance
Which of the following has incorrect treatment for the bank and book reconciling items assuming using adjusted balance method for bank reconciliation: a. Deposit in Transit or Undeposited collection should be added to the book in arriving at the correct cash balance b. Outstanding checks should be deducted from the bank balance c. Debit memos should be deducted from the balance per books in determining the correct cash balance d. Credit memos should be added to the cash balance per books in order to obtain the correct cash balance
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.4E
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Question
Which of the following has incorrect treatment for the bank and book reconciling items assuming using adjusted balance method for bank reconciliation:
a. Deposit in Transit or Undeposited collection should be added to the book in arriving at the correct cash balance
b. Outstanding checks should be deducted from the bank balance
c. Debit memos should be deducted from the balance per books in determining the correct cash balance
d. Credit memos should be added to the cash balance per books in order to obtain the correct cash balance
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