Chapter 6 Flashcards
1
Q
Why might you use a suspense account for the disposal of a van?
A
As it is not a regular transaction, the computerised system is unlikely to match it
2
Q
An overdraft is a ____ balance in the bank statement
A
Debit
3
Q
What three things are included in the reconciliation of the bank transaction report balance to the corrected cash at bank account balance?
A
Unpresented cheques
Bank errors
Uncredited lodgements
4
Q
Error of commission
A
When one side of a transaction has been recorded in the wrong account, and that account is of the same class as the correct account
