Click to watch the Tell Me More Learning Objective 5 video and then answer the q

Question

Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. When preparing a bank reconciliation, outstanding checks are a. deducted from the bank balance. b. added to the bank balance. c. deducted from the company's cash balance. d. added to the company's cash balance. 2. When preparing a bank reconciliation, a not sufficient funds (NSF) check is a. deducted from the bank balance. b. added to the bank balance. c. deducted from the company's cash balance d. added to the company's cash balance.

Explanation / Answer

At the time of Preparation of bank reconciliation, amount of outstanding checks is deducted from the ending balance appearing in the bank statement.

Answer is Option a)

For Preparation of bank reconciliation, an NSF (not-sufficient-funds) check is added to the balance of the bank statement.

Answer is Option b)

Advantages of using bank accounts include – enables companies to maintain a minimum cash balance, quick transfer of funds, transparency in transactions, independent recording of bank transactions, offers better convenience.

Answer is Option d)

Banks uses a Debit memo for charging its customers with service fee for maintenance of account with the bank. So out of the given options service charges, return check due to insufficient of funds, interest earned on company account.

So out of the given options payments made by electronic fund transfer doesn’t require any debit memo to be raised.

Answer is option c).

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.