Required information Skip to question [The following information applies to the questions displayed below.] Lab Insight: An
Question:
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[The following information applies to the questions displayed below.]
Lab Insight: An important internal control for cash is the reconciliation of the cash general ledger account to the bank statement on a regular basis. We call this a bank reconciliation and provide it here as an example of diagnostic analytics. In general, the expectation is that the company and the bank have recorded the same transactions, and any transactions not recorded by both are in need of reconciliation.
To perform a reconciliation, the company needs to reconcile the cash balance recorded in its general ledger (GL) with the cash that the bank collected or charged (disbursed) without the company's knowledge. At the same time, the company needs to reconcile the cash balance on the bank statement with the transactions recorded in the GL but not known at the bank. We also use reconciliations to find recording errors that either the bank or the company have made.
In this lab, we use conditional formatting to find items that need to be reconciled.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill