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

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2
Q

An overdraft is a ____ balance in the bank statement

A

Debit

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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

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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

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