When Preparing a Bank Reconciliation What Would Cause the Bank

question 30

Multiple Choice

When preparing a bank reconciliation what would cause the bank statement balance to be less than the adjusted cash balance in the general ledger? (Assume the bank is not in overdraft.)

• A) Bank service charges
• B) Dishonoured cheques
• C) Outstanding deposits
• D) Outstanding cheques

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Definitions:

General Journal

A foundational accounting record that keeps chronological entries of a company's transactions.

T-Accounts

A visual representation used in accounting to depict the debits and credits for each financial transaction affecting a particular account.

T-Accounts

T-Accounts are a form of accounting ledger that visually represents the debits and credits of financial transactions for each account in double-entry bookkeeping.

Capital Drawing

Withdrawals made by the owner(s) from the business for personal use, reducing the total capital invested in the business.