Internal Control and Cash Flashcards
A statement which brings into agreement the cash balance per book and cash balance per bank.
Bank Reconciliation
A monthly report of the bank to the depositor showing the cash balance per bank.
Bank Statement
Checks issued by the depositor and paid by the bank during the month.
Cancelled Checks
Items already recorded by the bank but not yet recorded by the depositor.
Book Reconciling Items
Money set aside to pay small expenses.
Petty Cash Fund
Items not representing deposits created by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts.
Credit Memos
Items not representing checks paid by the bank which are debited to the account of the depositor but not yet recorded by the depositor as cash disbursements.
Debit Memo
What are the book reconciling items?
Credit Memos, Debit Memos, Errors
Items already recorded by the depositor but not yet recorded by the bank.
Bank Reconciling Items
What are the bank reconciling items?
Deposit in Transit, Outstanding Checks, and Errors
Collections already recognized by the depositor but not yet reflected on the bank statement.
Deposit in Transit
Checks already recorder by the depositor as cash disbursements but not yet reflected on the bank statement.
Outstanding Check
Checks deposited but returned by the bank because of insufficiency of funds.
NSF/DAUD/DAIF Checks
Items not representing deposits created by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts.
Credit Memos
Items not representing checks paid by the bank which are debited to the account of the depositor but not yet recorded by the depositor as cash disbursements.
Debit Memo
