Practice - Conclusion
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Practice Questions
Test your understanding with targeted questions
What is a Bank Reconciliation Statement?
💡 Hint: Think about the purpose of a BRS.
List one reason why regular bank reconciliations are important.
💡 Hint: What do you think happens if discrepancies went unnoticed?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a Bank Reconciliation Statement help to achieve?
💡 Hint: Think about why businesses need to compare cash records.
Regular bank reconciliation is unnecessary if you trust your bank.
💡 Hint: What if a bank makes an error?
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company discovers that its cash book shows a balance of $5,000, while the bank statement shows $5,750. After investigation, it identifies $800 in deposits in transit and $200 in outstanding checks. What is the adjusted balance that should be reflected in both records?
💡 Hint: Make sure you adjust the cash book first according to the identified transactions.
A small business has not reconciled its bank account for three months. If it finds that several bank fees totaling $150 and an error of $100 in the cash book went unnoticed, how should the owner adjust the cash book balance to ensure accuracy?
💡 Hint: Remember, adjustments need to reflect unrecorded charges that affect the bottom line.
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