Asked by Patti Raether on Jun 30, 2024
Verified
NSF cheques received are accounted for by adding them to the cash balance per books.
NSF Cheques
Checks that cannot be processed because the drawer’s account lacks sufficient funds, standing for "Non-Sufficient Funds".
- Comprehend the impact of inaccuracies and deceit on financial reports and distinguish between these two concepts.
- Comprehend the procedure and objective of bank reconciliations in overseeing cash balances.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
False
Explanation :
NSF (Non-Sufficient Funds) cheques are accounted for by deducting them from the cash balance per books because they represent amounts that were previously recorded as cash receipts but have been returned by the bank due to insufficient funds in the payer's account.
Learning Objectives
- Comprehend the impact of inaccuracies and deceit on financial reports and distinguish between these two concepts.
- Comprehend the procedure and objective of bank reconciliations in overseeing cash balances.
Related questions
Errors Give Rise to Unintentional Misstatements in the Financial Statements
Describe a Bank Reconciliation and Discuss Its Purpose
Umber Company's Bank Reconciliation for September Is Presented Below ...
A Bank Reconciliation Should Be Prepared ...
The Following Information Is Available for the Savvy Company for ...