The Bank Reconciliation

question 89

Multiple Choice

The bank reconciliation

• A) must be done on a daily basis if the client uses electronic banking.
• B) should be performed by someone independent of the handling or recording of cash receipts.
• C) should be performed by someone who handles cash disbursements.
• D) ensures that no cash has been embezzled.

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Definitions:

Adjusted Cash Balance

The cash balance reported in a company's financial statement, modified for factors like outstanding checks or deposits in transit.

Bank Statement

A monthly or quarterly document provided by a bank summarizing the transactions, including deposits and withdrawals, that occurred in a specific account.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage over a period of time.