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:

Cash Flow

The whole quantity of financial inflows and outflows in a company, profoundly affecting its liquidity metrics.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights to dividends.

Taxes

Mandatory monetary fees or different forms of charges levied on an individual or entity by a government body to finance government operations and several public services.

Interest Paid

Interest paid refers to the amount of money paid over a period for the use of borrowed funds, representing the cost of borrowing to the debtor.