Which One of the Following Procedures Is not Part of Preparing

question 159

Multiple Choice

Which one of the following procedures is not part of preparing a bank reconciliation of a checking account?

• A) Tracing deposits listed on the bank statement to the books to identify deposits in transit
• B) Arranging canceled checks in numerical order and tracing them to the books to identify outstanding checks
• C) Identifying items added on the bank statement which have not been recorded as cash receipts by the company
• D) Preparing adjustments to reverse the transactions recorded for checks that are still outstanding

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Definitions:

Required Reserve Ratio

The required reserve ratio is the portion of depositors' balances that banks must have on hand as cash, set by central banking authorities to ensure liquidity.

Taxes

Obligatory financial impositions or another sort of tax placed on individuals by government institutions designed to support government expenditure and multiple public financial needs.

Expansionary Monetary Policy

A form of macroeconomic policy that aims to increase the money supply and typically lower interest rates to stimulate economic growth.

Discount Rate

The rate at which central banks lend to commercial banks or other financial institutions.