Cash & Equivalents, B/S, I/S

Question 1

How do you reconcile from the bank statement balance?

Answer 1

Bank statement balance
\+ Deposits in transit
- Outstanding checks
\+/- Bank errors =
Corrected balance

Question 2

How do you reconcile from the checkbook balance?

Answer 2

Checkbook balance
\+ Amounts collected by bank
- Unrecorded bank charges
\+/- Recording errors =
Corrected balance

Question 3

What items are excluded from cash?

Answer 3

Compensating balances (legally restricted)
Postdated checks or NSF
Overdraft protection (same bank = net balances, different = separate balances)
Restricted cash
Postage stamps

Question 4

What are parts of income statement?

Answer 4

Statement of Earnings & Comprehensive Income
(ON-TIDe-N-OC)
Operating Income (O)
Non operating Income (N)
Taxes (T) =
Income from Continuing Operations (I)
Discontinued Component Unit - Net of Tax (De) =
Net Income (N)
Other Comprehensive Income - Net of Tax (O) =
Comprehensive Income (C)