Which of the following is not a reason for the difference in balances between the
cash at the bank account and the bank statement?
Cheques issued but not yet presented for payment
Cheques deposited but not yet credited by the bank
Deposits made into the bank account not yet recorded by the business
Deposits made into the bank account and recorded by the business
cheques of $750 not yet presented
direct deposit of $1,000
cheque of $500 that was recently debited
direct payment of $750
Bank reconciliation done by the business:
Is for information purposes only
Is part of the business’ internal control system
Is sent to the bank for verification
The following statements describe the business’ Cash at bank Account. Which statement is incorrect?
When debtors settle their debts, the Cash at bank Account is debited.
When cash is deposited directly into the bank account, the Cash at bank account is credited.