After Preparing a Bank Reconciliation,no Adjusting Journal Entries Need to Be

question 47

True/False

After preparing a bank reconciliation,no adjusting journal entries need to be made for outstanding cheques or deposits in transit.
BT: Comprehension

---

Definitions:

Cost Method

An accounting approach for valuing certain assets and investments at their original purchase cost, with adjustments for depreciation or impairment.

Stock Investments

Financial assets representing ownership in a corporation, giving the holder a share of the corporation's earnings and assets.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recognizing income in proportion to their ownership percentage.

Cash Dividends

The allocation of a part of a corporation's profits, determined by its board of directors, to a group of its stockholders as cash.