The Preparation of a Bank Reconciliation Is an Important Cash

question 131

Essay

The preparation of a bank reconciliation is an important cash control procedure. If a company deposits cash receipts daily and makes all cash disbursements by check explain why the cash balance per books might not agree with the cash balance shown on the bank statement. Identify specific examples that may cause differences between the cash balance per books and the cash balance per bank.

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Definitions:

Statute Of Frauds

A legal principle that requires certain contracts to be in writing and signed by the party to be charged, to be enforceable.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and shares of profits and losses among partners in a business.

Secretary Of State

A high-ranking official in the government responsible for the foreign affairs in the federal government or various administrative duties within the state government.

Transferable Interest

is an interest in an entity, such as a partnership or limited liability company, that can be transferred or sold to another party.