Asked by Matthew Mihatov on May 13, 2024
Verified
In preparing a bank reconciliation, the amount of outstanding checks is added to the balance per bank statement.
Outstanding Checks
Checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.
Bank Statement
A summary of all transactions mailed to the depositor or made available online by the bank each month.
- Achieve knowledge about the concept and importance of protocols for internal control over cash and supplementary assets.
Verified Answer
SA
Saeed AlZarouniMay 19, 2024
Final Answer :
False
Explanation :
In preparing a bank reconciliation, the amount of outstanding checks is subtracted from the balance per bank statement to adjust for checks that have been written but not yet cleared by the bank.
Learning Objectives
- Achieve knowledge about the concept and importance of protocols for internal control over cash and supplementary assets.