College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 6, Problem 4DQ
To determine
Indicate the main reason for the difference between the cash balance in the Cash account of the company and the cash balance on the bank statement.
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why is there generally a difference between the balance in a cash account on the company's books and the balance on the bank statement
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Why does a company's cash at Bank account and bank statement rarely match?
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please answer this question by stating "why does a company's cash at Bank account and bank statement rarely match?
Why does the bank treat an account balance as a Credit when there is money in the account, while in the general ledger cash records of the business, the balance would show as a Debit?
Chapter 6 Solutions
College Accounting (Book Only): A Career Approach
Ch. 6 - Prob. 1QYCh. 6 - Prob. 2QYCh. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QYCh. 6 - Prob. 6QYCh. 6 - Prob. 7QYCh. 6 - Prob. 8QYCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQ
Ch. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - Prob. 8DQCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - a. Describe the entries that have been posted to...Ch. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 1PBCh. 6 - Prob. 2PBCh. 6 - Prob. 3PBCh. 6 - Prob. 4PBCh. 6 - Prob. 5PBCh. 6 - Prob. 1ACh. 6 - Prob. 2ACh. 6 - You work as a cashier for a service business. Some...
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- Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest incomearrow_forwardWhat does a debit balance in the cash short and over account represent? What does a credit balance in this account represent?arrow_forwardWhich of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bankarrow_forward
- How are the cash proceeds determined when a note receivable is transferred?arrow_forward1. During the reconciliation of the company’s cash account with its bank statement, what should the account holders look for?arrow_forwardWhich of the following adjusts the company’s balance of cash in a bank reconciliation? a. Interest earned. b. Checks outstanding. c. Deposits outstanding. d. An error by the bank.arrow_forward
- Which of the following adjusts the bank’s balance of cash in a bank reconciliation? a. NSF checks. b. Service fees. c. An error by the company. d. Checks outstanding.arrow_forward8. Which of the following statement is prepared to identify the discrepancies between the cash balance reported on the bank statement and the cash balance reported in a business’s cash account in the general ledger? a. Cash book b. Balance sheet c. Income statement d. Bank reconciliationarrow_forwardWhich of the following items must be deducted to the balance per ledger in preparing a bank reconciliation, which ends with adjusted cash balance? Interest on deposits Collections from customers Service charges Erroneous bank debitarrow_forward
- Why should the person in charge of cash receipts not also be in charge of keeping accounts receivable records? Explain.arrow_forwardThe explanation of the differences between the cash account balance according to the company’s book and the balance reported on the bank statement is a(n): A. Trial reconciliation B. Bank reconciliation C. Bank audit D. Balance Sheetarrow_forwardWhich of the following items is subtracted from the “cash balance from bank statement” on a bank reconciliation? interest earned on the bank account outstanding cheques deposits in transit bank service chargesarrow_forward
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