From page 4-4 of the VLN, what is the goal of a bank reconciliation?Group of answer choicesA. To make sure the company cash account is increasing.B. To make sure the company is profitable.C. To make sure the bank records and our company records are the same.D. To make sure the bank is competitive with other banks. Bank ReconciliationTiming differences and/or ErrorsBANK'S RECORDСOMPANYCOMPANY'S RECORDBANKThe bank statement represents thebank's record of the company's accountat the bank.The company's cash account in thegeneral ledger is the company'sАСCOUNTBoth records are record of the company's bankkeeping track of account.this account.The bank statement shows the endingbalance of the account before the bankThey should be The cash account shows the endingthe same.balance before it is reconciled. It isaccount is reconciled. It is the balancethe balance before reconciliation.before reconciliation.The goal is to get both documents to be the same, by including everything, and fixing errors wherethey exist.Bank ReconciliationBank StatementCompany's Cash LedgerBalance Before reconciliationBalance Before reconciliation+ outstanding deposits- outstanding checks+Notes received/collected by bank+Interest received+/- bank errors-NSF checks-unrecorded debit cards and EFTS-Bank service fees+/- company errorsBalance After reconciliationBalance After reconciliationBank Account (Statement)Company Cash Account (Ledger)+/- items that are recorded in the Company +/- items that are recorded on the Bank|Cash account (ledger) but HAVE NOT been Statement but HAVE NOT been recorded in therecorded on the Bank statement. Examples:|- outstanding checks+ outstanding deposits (deposits in transit)|Company Cash account (ledger). For example:|+Notes received/collected by bank|+Interest received|-NSF checks|-unrecorded debit cards and EFTS|-Bank service feesFix errors where they existFix errors where they existThe goal is to get both to be the same (by including everything); they both represent theCompany's bank account.After the bank reconciliation is completed, make sure to recordthe changes made to the cash account.I II| | O

From page 4-4 of the VLN, what is the goal of a bank reconciliation? Group of answer choices A. To make sure the company cash account is increasing. B. To make sure the company is profitable. C. To make sure the bank records and our company records are the same. D. To make sure the bank is competitive with other banks.

From page 4-4 of the VLN, what is the goal of a bank reconciliation? Group of answer choices A. To make sure the company cash account is increasing. B. To make sure the company is profitable. C. To make sure the bank records and our company records are the same. D. To make sure the bank is competitive with other banks.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Certainly! Here's a detailed information on bank reconciliation presented in table format: Bank Reconciliation Information: Key Components Definition Purpose Frequency Steps in Bank Reconciliation Common Adjustments Importance of Bank Reconciliation Explanation. Bank reconciliation is a process that compares the cash balance in a company's accounting records with the balance in its bank statement. - Identify discrepancies between the company's records and the bank statement. - Ensure accuracy and completeness of financial records. Detect errors, fraud, or unauthorized transactions. Typically performed monthly, but can be more frequent for larger transactions or to catch discrepancies early. 1. Start with the ending balance of the bank statement. 2. Add deposits in transit (deposits made but not yet recorded by the bank). 3. Deduct outstanding checks (checks written but not yet cleared by the bank). 4. Add or deduct bank errors (errors made by the bank in recording transactions). 5.…
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Banking
If you were the banker, what information would you want from a company to evaluate their riskiness and their ability to repay a loan? What specific information would you need to begin a cash receipts forecast? Identify three items that would be helpful.