FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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why is there generally a difference between the balance in a cash account on the company's books and the balance on the bank statement
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- Which of the following is a bank account from which a company transfers funds from a master account only as needed to cover checks presented for payment. A- Zero-balance account B- Concentration account C- Compensation account D- Correspondent accountarrow_forwardWhat are the two (2) adjustments required to reconcile the Cash Book with the Bank Statement? Explain what each adjustment represents.arrow_forwardWhich of the following adjusts the bank’s balance of cash in a bank reconciliation? a. NSF checks. b. Service fees. c. An error by the company. d. Checks outstanding.arrow_forward
- Explain briefly how proof cash affect the balance in book and bank balances?arrow_forwardExplain why the money listed under assets on a bank balance sheet may not actually be in the bank?arrow_forwardDo items reported as a credit memorandum on the bank statement represents (a) additions made by the bank to the company’s balance or (b) deductions made by the bank from the company’s balance? Explain.arrow_forward
- What item on the bank statement that may differ from the company's financial records. NSF check interest earned outstanding checks service chargearrow_forwardWhen journal entries for items in the Ledger Balance of Cash section of the bank reconciliation are made, the additions are: a.credited to the Capital account. b.debited to the Capital account. c.debited to the Cash account. d.credited to the Cash account.arrow_forwardAccompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) ____.arrow_forward
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