033 Bank Reconciliations

Question 1

List the three types of bank reconciliations.

Answer 1

Bank to Book; Book to Bank; Bank and Book to True.

Question 2

List the adjustments made to a bank balance to arrive at book income.

Answer 2

Deposits in Transit; Cash on Hand (deposited cash receipts, not petty cash); Outstanding Checks. Bank Errors.

Question 3

List the adjustments made to book balance to arrive at the bank balance.

Answer 3

Interest Earned; Note Collected; Service Charges; NSF Checks; Errors in company’s records.

Question 4

What is a deposit in transit?

Answer 4

Deposits made by a company that have not cleared the bank as of the bank statement date.

Question 5

What are outstanding checks?

Answer 5

Checks written and mailed by the company which have not cleared the bank by the bank statement date.

Question 6

What does cash on hand reflect?

Answer 6

Petty cash on hand and undeposited cash receipts.

Question 7

What does an NSF check represent?

Answer 7

“Non-sufficient funds” checks received from customers.