Bank Reconciliation (Flashcards)

This refers to a receipt that a company has recorded in its general ledger, but it is not yet reported in the bank account. (In the bank reconciliation this is an addition to the balance per bank.)

This is the balance in a company’s bank account and/or the ending balance on a bank statement.

This is the balance in the company’s general ledger account.

This term is often the reason for a check to be returned by the bank on which it is drawn. Sometimes the term “rubber check” is used to describe the check because it is said to have “bounced”.

This is usually a monthly fee charged by a bank for maintaining a company’s checking account. It will require a journal entry into the company’s general ledger accounts.

This is the time it takes between the point when a check is written until the check clears the bank on which it is drawn. It is associated with outstanding checks shown on the bank reconciliation.

This is a company’s record for sorting and storing transactions.

This record is usually maintained by an individual for recording the checks written, deposits made, interest earned, and the balance in its checking account.

This report or record shows the transactions occurring in a bank account and the ending balance in the account.

This is a common fee charged directly to a company’s checking account when new checks are printed. It will require an entry into the company’s general ledger accounts.

This fee is charged by one or more banks to process a check that was not paid by the bank on which it was drawn. It will require a journal entry in the company’s general ledger accounts.

This mistake results in a difference between the balance on a company’s bank statement and the balance in a company’s general ledger, but it does not require a journal entry for the company’s accounts.

This mistake results in a difference between the balance on a company’s bank statement and the balance in a company’s general ledger and it will require a journal entry to the company’s general ledger accounts.

An informal term used for a check that was returned to the depositor by the bank on which it was drawn because the maker’s bank account did not have sufficient funds.

This term refers to the procedures followed in order to safeguard an organization’s assets. An example is segregating duties so that the bank reconciliation is done by someone who does not write or sign the company’s checks.

This is the name that appears on the face of a check after the words “Pay to the order of”.

This term refers to the checks that have been paid by the bank on which they are drawn and therefore are listed on the bank statement.

This refers to a check with a date in the future. This check is not considered to be cash until the date of the check.

This refers to two or more digits that are not written in the proper sequence. The difference will be evenly divisible by 9. For example, “39” written as “93” results in a difference of 54, which is evenly divisible by 9.

This amount appears on the bank reconciliation after amounts are added and/or subtracted from the ending balance on the bank statement.

This amount appears on the bank reconciliation after amounts are added and/or subtracted from the balance in the general ledger cash account.

This word describes a checking account with a negative balance (usually caused by writing checks in excess of the amount in the checking account).

This describes a debit and credit amount often recorded in the general journal.

These amounts appear on a bank reconciliation and are likely to include bank service charges, returned check fees, and errors in the general ledger cash account.

These amounts appear on a bank reconciliation and are likely to include the amount of outstanding checks and deposits in transit.

A phrase that helps determine whether a reconciling amount should be an adjustment to the balance per books or an adjustment to the balance per bank.

This journal has been referred to as the “book of original entry”. It requires that both the account being debited and the account being credited be listed along with the respective amounts.

This refers to a check that had been written but is being eliminated by the maker because of an incorrect amount or other reason.

This is an instruction from a company to its bank to not honor one of its checks that had been written and released.