When a Bank Reconciliation Has Been Satisfactorily Completed,the Only Related

question 114

Multiple Choice

When a bank reconciliation has been satisfactorily completed,the only related entries to be made in the depositor's records are:

• A)To correct errors made by the bank in recording the dollar amounts of cash transactions during the period.
• B)To reconcile items that explain the difference between the balance per the books and the balance per the bank statement.
• C)To record outstanding checks and bank service charges.
• D)To record items that explain the difference between the balance per the accounting records and the adjusted cash balance.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue

The aggregate revenue from selling goods or services, which constitute a firm's central business functions.

Expense Accounts

Accounts used to record the consumption of assets or services that result in a decrease in owner's equity, excluding the withdrawal of business assets by the owner.

Income Summary Account

A temporary accounting ledger that aggregates all income and expenses over a period to calculate net profit or loss.