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What is a bank reconciliation? What is a Bank Reconciliation A bank reconciliation is a process performed by a company to ensure that its records (check register, general ledger account, balance sheet, etc.) are correct....

What items are added to the balance per bank on the bank reconciliation? Bank Reconciliation Adjustments to Bank Balance The items that are added to the balance per bank when doing a bank reconciliation include: Deposits...

What is bank balance and book balance? Definition of Bank Balance The term bank balance is commonly used when reconciling the bank statement. It is also known as the balance per bank or balance per bank statement....

What journal entries are prepared in a bank reconciliation? Definition of Journal Entries in a Bank Reconciliation Journal entries are required in a bank reconciliation when there are adjustments to the balance per...

Bank Reconciliation | Visual Tutorial

Our visual tutorial for the topic Bank Reconciliation provides you with the reasons why the bank reconciliation is important and also an easy-to-follow format. We then prepare a sample bank rec to tie everything together...

bank statement | Dictionary

Usually refers to a statement from the bank showing the activity in a company’s checking account. The statement includes the deposits received by the bank, checks paid by the bank, bank service charge, and other...

bank rec | Dictionary

A shortened version of the term bank reconciliation or bank statement reconciliation.

Bank Reconciliation | Cheat Sheet

Bank Reconciliation Bank Reconciliation The bank reconciliation is also known as the bank statement reconciliation or the bank rec. In accounting, a corporation’s checking account is considered to be part of its cash...

Bank Reconciliation | Quiz

Bank Reconciliation For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided. If you...

Bank Reconciliation | Business Forms

Business Form Bank Reconciliation This form lists the usual adjustments needed for the bank balance and the usual adjustments for the general ledger balance. This user-friendly form also indicates the journal entries...

bank errors | Dictionary

Errors made by the bank on a company’s bank account. These are usually infrequent but could include an incorrect amount of a check or deposit or a check or deposit recorded in the wrong account.

bank reconciliation | Dictionary

The process of comparing the amounts in the Cash account in the general ledger to the amounts appearing on the bank statement. The objective is to be certain that there is consistency between the amounts and that the...

bank statement reconciliation | Dictionary

See bank reconciliation.

Bank Reconciliation | Flashcards

Bank Reconciliation (Flashcards) Download Single-Sided PDF Download Double-Sided PDF All Cards (31) Marked Wrong (0) Marked Right (0) bank reconciliation (or) bank rec (or) bank statement reconciliation This procedure...

Bank Reconciliation | Word Scrambles

Join PRO to View Coaching Bank Reconciliation (Word Scramble) Download PDF To see each answer, press or click on the blue "Unscramble" button. If you have difficulty answering the following questions, learn...

bank overdraft | Dictionary

A negative balance in the bank’s records for the company’s checking account.

balance per bank | Dictionary

A phrase used in reconciling the bank statement. It refers to the ending balance shown on the bank statement.

bank balance | Dictionary

The amount in a bank account according to the bank’s records.

reconciliation of bank statement | Dictionary

See Explanation of Bank Reconciliation.

Reconciling the Bank Statement When preparing a bank reconciliation, you may find the following tip to be helpful: “Put it where it ain’t.” My now deceased neighbor (Herb) insisted that I share this tip, which he...

Bank Reconciliation #3 | Quick Test

of the page. 1. ABC Co.’s bank statement indicates that its checking account was credited when one of ABC’s customers transferred $500 into ABC’s checking account. How will this be recorded by ABC Co. in its...

In a bank reconciliation, what happens to the outstanding checks of the previous month? Definition of Outstanding Checks Outstanding checks are checks written by a company, but the checks have not cleared the bank...

What is separation of duties? What is Separation of Duties The separation of duties is one of various internal control techniques for safeguarding a company’s assets. By separating employee’s duties, the likelihood...

What does debit memo mean on a bank statement? Definition of Bank Debit Memo A debit memo on a company’s bank statement refers to a deduction by the bank from the company’s bank account. In other words, a bank debit...

What adjustment is needed when a check that was written in a previous month appears on the current month's bank statement? A check written in any previous month but not appearing on previous bank statements, should...

What is an unpresented check? An unpresented check is a check written by a company and entered in its records, but the check has not yet cleared the company’s checking account. In other words, the check has not yet...

What is the proper use of the words lend and borrow? If a company is granted a loan from its bank, the company is borrowing money from its bank, and the bank is lending money to one of its customers. In other words, the...

What is the distinction between debtor and creditor? Definition of Debtor A debtor is a person or enterprise that owes money to another party. The party to whom the money is owed might be a supplier, bank, or other...

What is a letter of credit? A letter of credit is a letter or document issued by a bank for use by one of its customers. The letter of credit states that the bank will guarantee payment up to the stated amount for...

Bank Reconciliation - Part 2 | Explanation

Our Explanation of Bank Reconciliation will show you the needed adjustments to the balance on the bank statement and also the adjustments needed to the balance in the related general ledger account. A comprehensive...

Bank Reconciliation #1 | Quick Test

Bank Reconciliation(Quick Test #1) Download PDF After you have answered all 20 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers. Note:...

Bank Reconciliation #2 | Quick Test

Bank Reconciliation(Quick Test #2) Download PDF After you have answered all 25 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers. Note:...

Bank Reconciliation #3 | Crossword Puzzles

A bank reconciliation compares the amounts that are on the bank statement with the amounts in the company's general ledger Cash account. The goal is to be certain that the correct amount is reported as the balance...

Bank Reconciliation - Part 3 | Explanation

Our Explanation of Bank Reconciliation will show you the needed adjustments to the balance on the bank statement and also the adjustments needed to the balance in the related general ledger account. A comprehensive...

Bank Reconciliation - Part 1 | Explanation

Our Explanation of Bank Reconciliation will show you the needed adjustments to the balance on the bank statement and also the adjustments needed to the balance in the related general ledger account. A comprehensive...

Bank Reconciliation #2 | Crossword Puzzles

A bank reconciliation compares the amounts that are on the bank statement with the amounts in the company's general ledger Cash account. The goal is to be certain that the correct amount is reported as the balance...

Bank Reconciliation #1 | Crossword Puzzles

A bank reconciliation compares the amounts that are on the bank statement with the amounts in the company's general ledger Cash account. The goal is to be certain that the correct amount is reported as the balance...

bank service charge expense | Dictionary

This is an administrative expense which reports the fees incurred by a company for the expenses associated with its checking account transactions.

What is an unpresented cheque or check and does it require an adjustment to the balance sheet? Definition of Unpresented Cheque or Check An unpresented cheque is a check that a company has written, but the check has not...

What is an outstanding check? Definition of Outstanding Check An outstanding check is a check that a company has issued and recorded in its general ledger accounts, but the check has not yet cleared the bank account on...