An Analysis That Explains Differences Between the Checking Account Balance

question 127

Multiple Choice

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n) :

• A)Internal audit.
• B)Bank reconciliation.
• C)Bank audit.
• D)Trial reconciliation.
• E)Analysis of debits and credits.

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Definitions:

Salaries Payable

A liability account that records the amounts of wages earned by employees that have not yet been paid to them.

Salaries Expense

An accounting item that represents the total amount paid to employees in the form of salaries over a specific period of time.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Prepaid Insurance

An asset account that represents insurance payments made in advance for future coverage periods.