Asked by Morgan Whittle on Jun 17, 2024
Verified
A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.
Check Outstanding
A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer, which has been issued but not yet cashed or cleared.
Bank Reconciliation
The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger.
- Perceive the rationale and paramount importance of internal control practices with respect to cash and alternative assets.
Verified Answer
RM
Robert MagnusJun 18, 2024
Final Answer :
False
Explanation :
A check outstanding for two consecutive months will appear on both bank reconciliations for those months, not just the first month's reconciliation.
Learning Objectives
- Perceive the rationale and paramount importance of internal control practices with respect to cash and alternative assets.