Bank Reconciliation Flashcards
1
Q
What is a bank reconciliation?
A
The account that figures out why a company’s cash balance doesn’t match the company’s cash according to the bank
2
Q
Are bank reconciliations dated over a period of time or a single point in time?
A
A single point in time
For example, “May 31, 2024”
3
Q
What are omissions called?
A
Outstanding deposit / deposit in transit
4
Q
Are the last few checks often missed by the bank?
A
Yes, the cash is usually exchanged in an acteurs way meaning the last few transactions may not be on a bank reconciliation
5
Q
What’s the difference between deposits in transit and outstanding cheques?
A
Deposits in transit signify money coming in
Outstanding cheques signify money going out
