Reconciliation (QuickBooks book
keeping), Bookkeeping Basics -
Accounting Concepts and Measurement
Assessment, Chapter 2- Double-entry
book-keeping: first principles,
QuickBooks
If your account balances don't match at the end of the month, which of the
following steps should you take to find the error? Select all that apply. - correct
answer ✔-Go line by line comparing ledger entries with the external account
statement
-Check the balance difference and cross-reference for missing transactions of
that amount
-All of these are appropriate ways to try and reconcile the accounts
If I use the balance sheet approach for reconciling the books each month, all
of the following accounts would be reconciled except: - correct answer
✔Bank Statement
-Inventory, Cash, and Accounts Payable are all accounts on the balance
sheet. A Bank Statement is an external source document used to cross-check
internal cash accounts during the reconciliation process.
The reconciliation process can help with the following except: - correct
answer ✔Ensuring the business is profitable
True or False: The month-end close-out process for certain accounts is
considered a type of reconciliation. - correct answer ✔True
,-To close out the books at the end of the month, you will have to reconcile
certain accounts.
The original records that prove a specific transaction took place are referred to
as: - correct answer ✔Source Documents
Which of the following is considered a source document? - correct answer
✔Receipts, Bank Statements, and Invoices are all considered source
documents.
Which of the following is not considered an element of a source document? -
correct answer ✔A Company Logo is not considered an element of a source
document.
The Cash account is an example of an account that can be reconciled using
the Report Reconciliation method. - correct answer ✔False
-Cash accounts must be reconciled using the Transactional Method of
Reconciliation.
True or False: When using the Transactional Method of Reconciliation, each
transaction or source document is compared to the account to ensure that the
money was actually spent. - correct answer ✔True
-Reconciliation is the process of comparing transactions and activities to
supporting documentation. Further, reconciliation involves resolving any
discrepancies that may have been discovered.
,Which of the following best describes the Transactional Method of
Reconciliation? - correct answer ✔The method of reviewing existing
transactions and source documents to confirm the amount was spent
-Using the Transactional Method of Reconciliation, existing transactions
and/or source documents are reviewed to confirm that the amount was
actually spent.
Which of the following best describes the Report Method of Reconciliation? -
correct answer ✔The method of comparing the amount listed on a source
document to the actual ending balance listed on the balance sheet
-
Which of the following accounts can be reconciled using the report
reconciliation method? (select all that apply) - correct answer ✔Accounts
Payable, Payroll, and Long-term Notes can all be reconciled using the report
reconciliation method.
True or False: Reconciliation is the process by which a business verifies its
books with external account statements or data to ensure they match and
reflect accurate business dealings. - correct answer ✔True
Stan is in the process of performing a month-end close-out for his business,
Lock 'n Key. He noticed that his cash account indicates a difference of $25
from his bank statement. The following are strategies he can use to reconcile
his books, except: - correct answer ✔False:Stan can withdraw $25 from his
bank, and that will balance out his books
To reconcile:
, Perform a line-by-line review of transactions in his general ledger with the
bank statement
Check for any uncleared checks
Check for any service fees the bank may have charged
The following are examples of source documents except: - correct answer
✔Post-it Note
The following are pros of using the Report Review Method for Reconciliation,
except: - correct answer ✔Not a pro-It provides a detailed level review (The
report review method provides a high-level overview, not a detailed one.)
pros
It can give insight into the business health and trends for certain accounts
It can highlight problem accounts to focus on
It can be a faster process than other methods
Which of the following accounts can be reconciled using the report
reconciliation method? (Select all that apply) - correct answer ✔Accounts
Payable, Payroll, Long Term Note
True or False: As long as the items are legible and contain all of the original
information, in most cases, a photocopy or digital copy of a source document
is deemed acceptable. - correct answer ✔true
Zapata is preparing her annual taxes for her retail clothing business, La
Calidad. She has been performing quarterly reconciliations of her accounts
and is about to do her final quarterly review. She begins with an analytical
review, and then, digs deeper if a discrepancy is noted. Review the source
documents and statements below to answer the questions.
keeping), Bookkeeping Basics -
Accounting Concepts and Measurement
Assessment, Chapter 2- Double-entry
book-keeping: first principles,
QuickBooks
If your account balances don't match at the end of the month, which of the
following steps should you take to find the error? Select all that apply. - correct
answer ✔-Go line by line comparing ledger entries with the external account
statement
-Check the balance difference and cross-reference for missing transactions of
that amount
-All of these are appropriate ways to try and reconcile the accounts
If I use the balance sheet approach for reconciling the books each month, all
of the following accounts would be reconciled except: - correct answer
✔Bank Statement
-Inventory, Cash, and Accounts Payable are all accounts on the balance
sheet. A Bank Statement is an external source document used to cross-check
internal cash accounts during the reconciliation process.
The reconciliation process can help with the following except: - correct
answer ✔Ensuring the business is profitable
True or False: The month-end close-out process for certain accounts is
considered a type of reconciliation. - correct answer ✔True
,-To close out the books at the end of the month, you will have to reconcile
certain accounts.
The original records that prove a specific transaction took place are referred to
as: - correct answer ✔Source Documents
Which of the following is considered a source document? - correct answer
✔Receipts, Bank Statements, and Invoices are all considered source
documents.
Which of the following is not considered an element of a source document? -
correct answer ✔A Company Logo is not considered an element of a source
document.
The Cash account is an example of an account that can be reconciled using
the Report Reconciliation method. - correct answer ✔False
-Cash accounts must be reconciled using the Transactional Method of
Reconciliation.
True or False: When using the Transactional Method of Reconciliation, each
transaction or source document is compared to the account to ensure that the
money was actually spent. - correct answer ✔True
-Reconciliation is the process of comparing transactions and activities to
supporting documentation. Further, reconciliation involves resolving any
discrepancies that may have been discovered.
,Which of the following best describes the Transactional Method of
Reconciliation? - correct answer ✔The method of reviewing existing
transactions and source documents to confirm the amount was spent
-Using the Transactional Method of Reconciliation, existing transactions
and/or source documents are reviewed to confirm that the amount was
actually spent.
Which of the following best describes the Report Method of Reconciliation? -
correct answer ✔The method of comparing the amount listed on a source
document to the actual ending balance listed on the balance sheet
-
Which of the following accounts can be reconciled using the report
reconciliation method? (select all that apply) - correct answer ✔Accounts
Payable, Payroll, and Long-term Notes can all be reconciled using the report
reconciliation method.
True or False: Reconciliation is the process by which a business verifies its
books with external account statements or data to ensure they match and
reflect accurate business dealings. - correct answer ✔True
Stan is in the process of performing a month-end close-out for his business,
Lock 'n Key. He noticed that his cash account indicates a difference of $25
from his bank statement. The following are strategies he can use to reconcile
his books, except: - correct answer ✔False:Stan can withdraw $25 from his
bank, and that will balance out his books
To reconcile:
, Perform a line-by-line review of transactions in his general ledger with the
bank statement
Check for any uncleared checks
Check for any service fees the bank may have charged
The following are examples of source documents except: - correct answer
✔Post-it Note
The following are pros of using the Report Review Method for Reconciliation,
except: - correct answer ✔Not a pro-It provides a detailed level review (The
report review method provides a high-level overview, not a detailed one.)
pros
It can give insight into the business health and trends for certain accounts
It can highlight problem accounts to focus on
It can be a faster process than other methods
Which of the following accounts can be reconciled using the report
reconciliation method? (Select all that apply) - correct answer ✔Accounts
Payable, Payroll, Long Term Note
True or False: As long as the items are legible and contain all of the original
information, in most cases, a photocopy or digital copy of a source document
is deemed acceptable. - correct answer ✔true
Zapata is preparing her annual taxes for her retail clothing business, La
Calidad. She has been performing quarterly reconciliations of her accounts
and is about to do her final quarterly review. She begins with an analytical
review, and then, digs deeper if a discrepancy is noted. Review the source
documents and statements below to answer the questions.
