What Does It Mean to Successfully Reconcile a Bank Statement

question 5

Multiple Choice

What does it mean to successfully reconcile a bank statement?

• A) The bank records and medical office records are in agreement.
• B) The bank has credited all the deposits the office has made.
• C) All of the checks that were written by the office have "cleared."
• D) There are adequate funds in the office checking account to cover anticipated expenses.

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Definitions:

Firm's Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Generally Accepted Accounting Principles

A collection of commonly followed accounting rules and standards for financial reporting.

CRA

CRA can refer to a Credit Rating Agency, which is an organization that assigns credit ratings to issuers of certain types of debt securities, as well as the debt instruments themselves.

Economic Life

The expected period of time during which an asset is useful to the average owner, or until an asset is projected to generate economic benefits.