FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Question
Chapter 7, Problem 23Q
To determine
Lack of agreement: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree.
To explain: The reasons for lack of agreement with an example
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following statements is false with regard to a Cash Receipts Journal?:
All receipts of cash from customers should be recorded in it
Receipts of cash from the owner should not be recorded in it
Receipt of cash from cash sales should be recorded in it.
Receipt of cash from borrowing should be recorded in it.
23. Hank Cook is confused about the lack of agreement
between the cash balance per books and the balance
bank. Explain the causes for the lack of agreement
per
to Hank and give an example of each cause.
Bank errors should:
Group of answer choices
be adjusted in book but not in bank proof of cash.
be adjusted in book proof of cash only.
be adjusted in bank proof of cash only.
be adjusted to both book and bank proof of cash.
Chapter 7 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Prob. 7.5BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.8BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.15BECh. 7 - Prob. 7.16BECh. 7 - Prob. 7.17BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4aDIECh. 7 - Prob. 7.4bDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.1IECh. 7 - Prob. 7.2IE
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- State the reasons of the following statement: The balance in the cash column of the cash book is always a debit balance where as that in the bank column is sometimes credit also. Contra entries in the cash book are not posted into the ledger. The cash account and the bank account are not posted in the ledger.arrow_forwardIf an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off? Explain.arrow_forwardAnother way to describe account reconciliation is bank reconciliation—the process of bringing the balance of the bank statement and the balance of the cash account into agreement. True Falsearrow_forward
- If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off?arrow_forwardWhich of the following statements is true? A. Window dressing is a practice of closing the books of accounts at the end of the accounting period for a better financial position and performance. B. Lapping is a transfer of cash from one bank to another bank. C. Kiting consists of misappropriating a collection from one customer and concealing this defalcation when collection is made from another customer. D. The imprest system required that all cash receipts should be deposited intact and all cash payments should be made by means of check.arrow_forwardWhen the amount of cash in the cash register exceeds the amount in the cash register tapes, the difference is debited to Cash Over and Short account.___________. True or false?arrow_forward
- Why may there be a difference between the bank statement ending cash balance and the ending balance in the Cash account? Give at least two examples each of adjustments to the bank balance and to the book balance.arrow_forwardWhy should the person in charge of cash receipts not also be in charge of keeping accounts receivable records? Explain.arrow_forwardA member attempts to make a make deposit to her account, which involves a large sum of cash, which is inconsistent with her known business activity. This arouses the teller's suspicion, prompting him to ask her what is the source of the funds. The member refuses to disclose its origin. How should the teller proceed? A. The transaction should not be undertaken, and an STR should be filled. B. Transaction may be undertaken if the member is on who is known to management and who has had a relationship with the credit union for 5 years C. The member should be advised that a STR would be filed D. None of the abovearrow_forward
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