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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