Which Financial Statement Would You Refer to in Order to Determine

question 118

Multiple Choice

Which financial statement would you refer to in order to determine whether a company owed funds to creditors?

• A) Statement of public accounting
• B) Statement of Retained Earnings
• C) Income Statement
• D) Balance sheet

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company's bank statement with the amount shown in the company's own records.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cashed or cleared by the bank.

Balance Per Bank

The balance as per bank refers to the amount of money shown in the bank's records as available in an account.

NSF Check

A cheque that has been returned by the bank because the account on which it was drawn did not have sufficient funds, stands for Non-Sufficient Funds.