If a Company Deposits All Its Receipts in the Bank

question 125

True/False

If a company deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank statement balance will always agree with the company's record of its chequing account balance.

---

Definitions:

Participative Budgeting

A budgeting process where those who are impacted by a budget are involved in the development of the budget, promoting engagement and accountability.

Budgetary Achievement

The extent to which the budgeted targets or goals have been met or achieved during a specific period.

Direct Material

Raw materials that are directly incorporated into the final product in the manufacturing process.

Budgeted Production

The quantity of goods or services that a company plans to produce during a specific period, as determined during budgeting.