Which One of the Statements Appearing Below Is Incorrect Regarding

question 82

Multiple Choice

Which one of the statements appearing below is incorrect regarding bank reconciliations?

• A)A bank reconciliation is an internal report prepared to report the cash balance to investors and creditors.
• B)If a company's records show a different cash balance from that shown on the company's bank statement,either the company or the bank has made an error.
• C)After preparing a bank reconciliation,no journal entries need to be made for outstanding checks or deposits in transit.
• D)The up-to-date ending cash balance on the bank statement side will generally not equal the up-to-date ending cash balance on the book side.

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Definitions:

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with total assets.

Sales On Account

Transactions where goods or services are provided to a customer with an agreement that payment will be made at a later date, similar to credit sales.

Equity Multiplier

A financial ratio that indicates the portion of a company's assets that is financed by stockholder's equity, highlighting leverage.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insights into its financial position.