Identify Whether Each of the Following Items Affects the Bank

question 39

Essay

Identify whether each of the following items affects the bank side or the book side of a bank statement reconciliation._____ (1) Bank service charges _____ (2) Outstanding cheques _____ (3) Deposits in transit _____ (4) NSF cheque _____ (5) Interest on a chequing account _____ (6) The bank recorded a cheque for $958. The company wrote the cheque for $9,580 _____ (7) The bank printed cheques for the depositor. ____ (8) Debit memo _____ (9) Credit memo _____ (10) The bank collected a $1,000 note for the depositor.

---

Definitions:

Exchange Rate

The amount one currency is worth when exchanged for another.

Foreign Assets

International investments or possessions held by a country, corporation, or individual.

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers is greater than its total exports, indicating that it is spending more on foreign trade than it is earning.

British Pounds

The official currency of the United Kingdom, which is also known as Sterling.