Asked by Jagmeet Sahota on Jun 27, 2024
Verified
On the April 30 bank reconciliation, a deposit made by a company to its bank account on April 18 will likely appear as a(n)
A) addition to the balance per books.
B) deduction from the balance per books.
C) deduction from the balance per bank.
D) This will not affect the current period's bank reconciliation.
Bank Reconciliation
The method of aligning the amounts in a company's bookkeeping records for a cash account with the matching data on a bank statement.
Deposit Made
A payment made in advance for goods or services that are to be received in the future, often recorded as an asset on the balance sheet.
- Familiarize oneself with the goals and components integral to the bank reconciliation method.
- Discover items that demand rectification in a bank reconciliation and their ramifications on the balance as per the records and as per the bank.
Verified Answer
SS
Shaherah Samsudin04Jul 01, 2024
Final Answer :
D
Explanation :
Deposits made by a company to its bank account are usually reflected in the bank's records within a few days. Therefore, a deposit made on April 18 would likely have already been processed and included in the bank's balance by April 30, making it irrelevant to adjustments in the current period's bank reconciliation.
Learning Objectives
- Familiarize oneself with the goals and components integral to the bank reconciliation method.
- Discover items that demand rectification in a bank reconciliation and their ramifications on the balance as per the records and as per the bank.
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