Asked by Becca Moore on Jul 19, 2024
Verified
When preparing the monthly bank reconciliation,the accountant for Farris Corporation discovered that a check correctly written to one of Farris' suppliers for $159 had been incorrectly recorded in the books as $195.Which of the following statements is correct with respect to the bank reconciliation process?
A) The cash balance per the books will be decreased.
B) The cash balance per the bank statement will be increased.
C) The cash balance per the bank statement will be decreased.
D) The cash balance per the books will be increased.
Bank Reconciliation
The process of matching and comparing figures from accounting records against those displayed in a bank statement to ensure consistency.
Incorrectly Recorded
Refers to entries or transactions that have been recorded inaccurately in the accounting records, requiring correction.
Cash Balance
The amount of money a company has in its cash accounts, including currency, coins, and balances in checking and savings accounts.
- Ready and modify financial statements in response to bank reconciliation outcomes, notably identifying non-sufficient funds (NSF) checks and banking mistakes.
Verified Answer
JT
Jaiden TonelJul 22, 2024
Final Answer :
D
Explanation :
The cash balance per the books will be increased because the error made the recorded cash outflow greater than it actually was. Correcting the error will add back the difference to the book balance.
Learning Objectives
- Ready and modify financial statements in response to bank reconciliation outcomes, notably identifying non-sufficient funds (NSF) checks and banking mistakes.