Asked by Julian Green on May 14, 2024
Verified
A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.
Check Outstanding
A check that has been written and recorded in the issuing account but has not yet been cleared or cashed by the bank.
Bank Reconciliation
The process of comparing and adjusting the balance shown on a bank statement with the amount shown in a company’s records to ensure they match.
- Acquire knowledge on the methodology and relevance of bank reconciliation in the context of financial accounting.
Verified Answer
DM
Danial MutalibMay 18, 2024
Final Answer :
False
Explanation :
A check outstanding for two consecutive months will appear on both months' bank reconciliations, since it has not yet cleared the bank.
Learning Objectives
- Acquire knowledge on the methodology and relevance of bank reconciliation in the context of financial accounting.