Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. generally, we do not expect the amount in the clie

Generally, we do not expect the amount in the client’s accounting system for a cash account...

70.2K

Verified Solution

Question

Accounting

Generally, we do not expect the amount in the client’saccounting system for a cash account (e.g., operating cash balanceas of 12/31/18 = $508,219.33) to match the amount that thefinancial institution confirms (e.g., “our records show that yourclient’s 12/31/18 bank account was $478,921.54). Why do wegenerally not expect the financial institutions to confirm theexact amount reported in the client’s accounting system? Anotherway of asking this question is: Why are there reconcilingdifferences between the client and financial institution’srecords?

Answer & Explanation Solved by verified expert
3.8 Ratings (518 Votes)
The cash account in the books and the bank balance as per financial institutions record often do not tally and there exist some differences that are to be reconciled Some of the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The chief compound in marble is CaCO3. However, marble is readily attacked by acids. [Ca2+] in normal...

Chemistry
Q

Please share your thoughts. 1. Is there a problem with the duty-based desire to seek absolute moral...

Psychology
Q

Give the energy band description of conductor, semiconductor and insulator. Why are the valence electrons so...

Electrical Engineering
Q

29 a For an element with atomic number 29 i Write the electronic configuration ii...

Physics
Q

7 A liquid p 1 65 g cm flows through two horizontal sections of tubing...

Physics
Q

rested in predicting the temperature in Fahrenheit of the striped ground cricket from their chirps...

Geometry
Q

Given a railroad curve with the following parameters Dc 2 00 00 18 00 00...

Basic Math
Q

At a computer store, a customer is considering 9 different computers, 10 different monitors, 6...

Calculus
Q

Trevor is a single individual who is...

Accounting
Q

c. Compute the balance reported by Purchase as its investment in Steal at December 31,208....

Accounting
Q

Periodic and Perpetual Systems-Calculating Ending Inventory and Cost of Sales Using Average Cost (Moving Average),...

Accounting
Q

Exercise 6-4 Calculate inventory amounts when costs are rising (L06-3) The following information applies to...

Accounting