If the Bank Reconciliation Includes a Deposit in Transit,a Journal

question 95

True/False

If the bank reconciliation includes a deposit in transit,a journal entry is required that includes a debit to cash.

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Definitions:

Period-To-Period Consistency

An accounting principle ensuring the application of the same accounting methods and principles from one period to the next to ensure financial comparability.

Debits

Accounting entries that increase assets or expenses or decrease liabilities or equity on a company's balance sheet.

Credits

Accounting entries that increase liabilities or equity or decrease assets, representing the opposite effect of debits in the double-entry bookkeeping system.

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.