The Starting Point for the Verification of the Balance in the General

question 47

Multiple Choice

The starting point for the verification of the balance in the general bank account is to obtain

• A)the client's December bank statement and reconcile it.
• B)a bank reconciliation from the client.
• C)a cutoff bank statement directly from the bank.
• D)the client's cash account balance from the general ledger.

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Definitions:

Expense Accounts

Accounts in the general ledger representing the various costs incurred by a company in the course of its operations, excluding product cost.

Accrual Method

An accounting technique that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Reversing Entries

An accounting method used to reverse journal entries, typically at the beginning of a new accounting period, to cancel adjustments made in the previous period.

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations or other activities.