Please Refer to the Following Bank Reconciliation: Journal Entries

question 97

Multiple Choice

Please refer to the following bank reconciliation: Journal entries are required for the reconciling items on the book side because:

• A)those transactions have already occurred, but have not been recorded yet on the company books.
• B)the amounts are immaterial.
• C)those transactions have not yet been recorded by the bank.
• D)the adjusted balances on both sides are the same amounts.

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Definitions:

Credit Side

The right side of a financial ledger, where increases in liabilities, equity, and revenue, and decreases in assets and expenses are recorded.

Chart Of Accounts

A numbering system of accounts that lists the account titles and account numbers to be used by a company.

Account Balance

The difference between the debits and credits recorded in an account, representing the net value at a point in time.

Compound Entry

In accounting, it refers to a journal entry that involves more than two accounts whereby multiple debits and/or credits are made.