In corporate liquidation of a closed bank, which of the following unsecured credits is classified as without priority?  a. Claims of bank depositors b. Claims of local government for local taxes c. Claims of bank employees d. Claims for violation of Anti-Money Laundering Law

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: bank reconciliation should be prepared periodically because Select one: A. the bank has not…

A: There are two type of balances for cash in the business. One is cash balance as per cash book and…

Q: Which of the following statements is incorrect? A bank providing a loan to the entity is not a…

A: D) An entity needs to disclose if it has a common director with another entity because there might…

Q: Explain

A: The "Anti-Money Laundering Council" (AMLC) is the government entity entrusted with implementing the…

Q: Match each term associated with a bank reconciliation with its description. Terms Descriptions…

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

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: 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: Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire…

A: Very easy and low cost convenient way of getting loan are draft loans.

Q: Discuss using figures how Bank Overdraft will affect the preparation of Bank Reconciliation…

A: Bank reconciliation statement is a kind of statement prepared in order to reconcile the balances…

Q: n preparing a bank reconciliation, what is the proper treatment of an NSF check?

A: A not-sufficient fund (NSF) check is one of the checks that has not been cleared by the bank of 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: 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: Under what conditions may a bank refuse to make payment?

A: Conditions:- - when the customer has died - customer had insane or insolvent. - customer lost the…

Q: What necessary steps should be taken by the bank if they classify an account as unsatisfactory?

A: Generally in the following cases bank classify particular account as unsatisfactory account: 1.When…

Q: properly defaults and is under liquidation, can the creditors of the bank touch and receive the…

A: Answer: Concept: When the liquidation occurs in bank, there is preferential payment that are to be…

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: refers to the possibility that the debtors supported by bank credit are unable or unwilling to repay…

A: Commercial banks are providers of funds and financing to their customers who are in need of funds.…

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: Deposits accepted by bank are: Select one alternative: Bank’s liabilities Deposits are not…

A: Deposits are the amount deposited in the bank by the customer. Bank pays a specific rate of interest…

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: Why does a bank credit a customer's account when the customer makes a deposit and debit the account…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Distinguish between illiquidity and insolvency as it affects a bank and discuss the reasons why…

A: Here are the two terms meanings, Illiquidity is considered as the short term problem of banks where…

Q: Which of the following items does NOT cause a difference in the bank balance and the book balance on…

A: Introduction: Companies prepare bank reconciliation at the regular intervals to identify differences…

Q: What documentation should an auditor inspect when a client has paid off a bank note? How could an…

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

Q: Credits given by the bank are: Select one alternative: Bank’s liabilities Credits are not…

A: Credits or loans are lent by the bank to the general public. Bank charges interest on them. This is…

Q: bank reconciliation

A: Bank reconciliation statement is required to be prepared when the bank balance and cash cash is not…

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.