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Ad libitum [116K]
3 years ago
15

Determine the statements below that are true regarding why a bank reconciliation is used. (Check all that apply.) a) The Cash ac

count balance in the general ledger is accurate, but the bank statement balance is not. b)Timing differences between the bank statement and the depositor's records are reflected in the bank reconciliation. c) The bank reconciliation is useful in proving the accuracy of the Cash account in the general ledger.d) We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two.
Business
2 answers:
nlexa [21]3 years ago
6 0

Answer:

b)Timing differences between the bank statement and the depositor's records are reflected in the bank reconciliation.

c) The bank reconciliation is useful in proving the accuracy of the Cash account in the general ledger.

d) We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

Alexandra [31]3 years ago
3 0

Answer: The correct options are B and D.

Explanation: A bank reconciliation statement is prepared for the sole purpose of reconciling the balances reflected in the cash account (cash book) of a business entity and the cash account maintained by the bank on behalf of the business organisation at regular intervals (usually every month).

The normal procedure is to compare entries in your cash account with those in the bank statement provided by your bank. Ideally, all entries are supposed to be in agreement. In other words, all your debit transactions in your cash account should have been in the credit of your bank statement, and all credit transactions should have been on the debit side of your bank statement.

However, the ideal situation is not always achievable in real practice. Timing of certain transactions like check payments can account for a difference in month end balances. To illustrate, a check paid in to your bank would have been recorded as a debit in your cash account but the bank does not usually credit your account with the check amount on the same date. If this transaction occurs on the last day of the month, it would not be reflected until the following month and your current bank statement would show a difference.

Also, some charges are recorded into the debit of your bank statement and this would not be reflected in your cash account until your bank statement is made available. Such differences would also be taken care of by a bank reconciliation statement and in way does this mean your cash account is inaccurate.

So basically, a bank reconciliation statement does not try to prove accuracy or otherwise of your cash account, but it is meant to identify and explain any difference or differences (in terms of entries) between your cash account and the bank records.

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Explanation:

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The Government security with a similar payoff term is the US Treasury bill with 1 year left till maturity and this will be the opportunity cost because instead of the Government issuing and paying out that security they will instead pay for the carbon.

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3 years ago
A ______________________ is created each time the federal government spends more than it collects in taxes in a given year. budg
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The correct option is (A) Budget deficit.

A budget deficit is created each time the federal government spends more than it collects in taxes in a given year.

<h3>What is budget deficit?</h3>
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  • The government often refers to spending as a "budget deficit" rather than income from businesses or individuals. Accumulated deficits are the basis of the national debt.
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1 year ago
Consider the given simple economy. Sheepnip Co. makes sheep feed. Better-bald Inc. purchases sheep feed for the sheep it raises
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Answer:

Explanation:

1. What is the total payments (income) to factors of Better-bald Inc.?

Payments to factors of Better-bald Inc. = Rent+Wages+Interest payment+Profits = 450+300+100+750 = $1600

2. What is the total payments (income) to factors of Sweeter Sweaters Inc.?

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3. If we use income method to calculate GDP, we need to sum the payment to factor of production by the entreprises in the economy who employ the factor of production.

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E

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