Which of the following statements is false? a. Legally restricted bank deposits held as compensating balances should be segregated from the cash account and reported under a separate caption. b. Cash may be offset against a liability if the deposit of funds in a restricted account clearly constitutes the legal discharge of the liability. c. Not all items included in cash constitute legal tender. d. Bankers’ acceptances and commercial paper may be shown as part of the cash account provided this is disclosed.

Q: Outstanding checks: Group of answer choices Have not been received by the bank for processing Are…

A: Outstanding checks are those that the business has written to a supplier but these have not been…

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

A: Bank Reconciliation statement is a statement prepared to reconcile the cash book balance and bank…

Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Bank liquidity refers to measures of cash and other assets equivalent to cash which is available…

Q: he amount of the outstanding checks is included on the bank reconciliation as a(n) Select one: A.…

A: >Outstanding checks are the checks that have been written and given to a party, but that party…

Q: On a ban reconcialiation, customer's checks that are returned for lack of funds would be a.…

A: PLEASE LIKE THE ANSWER CORRECT ANSWER IS "a" i.e.,  deducted from the balance per company records

Q: All of the following statements are True about Bank overdrafts: If no offsetting allowed, should be…

A: Bank Overdraft:  A bank overdraft occurs when there is not enough money to do the transaction but…

Q: Which of the following is not an objective of the cash audit? determine that a. A long-term…

A: Objectives of Cash Audit One of the objectives for a cash audit is to verify that the recorded cash…

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: With regard restricted cash, all the following statement are correct except OA It is a cash set…

A: 1. Restricted Cash is is the cash held for some specific purpose. It is an asset for the company but…

Q: The bank balance in the cash book and that of the bank statement may disgrace because of…

A: Bank balance in cash book means balance shown in books of the company as cash balance. Bank…

Q: When preparing a bank reconciliation, a not sufficient funds (NSF) check is

A: Not sufficient funds (NSF) check is the check issued by the issuer but which is not honured or…

Q: cash balance

A: If the cash balance shown in the company’s cash records is more than the correct cash balance and…

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: Preparing the bank recociliation is consifered to be an important step in interna; control process…

A: Bank reconciliation refers to the process of reconciling the balances of the accounting records 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: Seldom does the balance of the cash in bank account in the depositor's books agree with the balance…

A: Seldom does the balance of the cash in bank account in the depositor's books agree with the balance…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Budget audits or a third-party objective review and evaluation of a company's financial accounts are…

Q: Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections…

A: The debit memorandum is issued by the bank to notify the depositor about the deductions made from…

Q: When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are…

A: Equal amount of Adjusted book balance and the adjusted bank balance doesn't tell the cash is used…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

Q: If a check correctly written and paid by the bank for $744 is incorrectly recorded on the company's…

A: Bank reconciliation: It is a statement which is prepared to reconcile the balance as per cash book…

Q: Accompanying the bank statement was a debit memo for bank service charges.  On the bank…

A: Bank service charge: Bank service charge is charges levied by the bank for the services provided or…

Q: Which of the following items is subtracted from the “cash balance from bank statement” on a bank…

A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…

Q: In preparing a bank reconciliation, the amount of deposits in transit is deducted from the balance…

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

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: 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: Counting cash and verifying bank reconciliation are basic substantive procedures and are not…

A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: If a bank is in a 'state of continuing inability or unwillingness to maintain a condition of…

A: Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet…

Q: The Undeposited Funds account contains: A) Only partial payments received from customers B) Funds…

A: The undeposited funds account means ro show the amount of the other current assets in assets side of…

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: A check returned by the bank marked "NSF" means Select one: a. not satisfactorily filled-out. b. not…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and passbook with…

Q: Technically, a bank can require depositors to give prior notice before they withdraw funds from time…

A: Time deposits are deposits in the a bank which has fixed time of maturity. For this deposits,…

Q: Which of the following items would normally be EXCLUDED from the amount to be reported as cash on a…

A: Statement of financial position is the one on which the company's assets and liabilities are…

Q: Which of the following must be deducted from the bank statement balance in preparing a bank…

A: Bank reconciliation is important for better Internal control because it provides the clear picture…

Q: Identify which one of the following statement is not correct? a. The credit limit under the facility…

A: A cash credit is a line of credit lent against the asset and liabilities, credit worthiness etc. The…

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: 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 is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: why is petty cash fund deducted in the book balance of the entity when making bank reconciliation?

A: A petty cash fund is a fund where some money is kept separately to pay for minor expenses such as…

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: The portion of an entity’s cash account that is held as a compensating balance must be aggregated…

A: A compensating balance refers to the minimum portion of an entity’s cash account that a borrower…

Q: Which of the following is not true? a. The Petty Cash account is debited when the fund is…

A: Solution:- Given, Some options related to Bank and we have to find the what is not true in those…

Q: A common audit procedure to verify the existence assertion of cash account balances is: a.…

A: Existence assertion is the assertion that the assets and the liabilities which is appearing the…

Q: Indicate whether the firm should add or subtract each item below from its balance of cash or the…

A:

Q: If the cash balance shown on the entity is accounting records is less than the correct each balance…

A: Answer

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.