Bank errorsGroup of answer choicesmust be corrected by debits.are infrequent in occurrence.occur because of time lags.are corrected by making an adjusting entry on the depositor's books.
Question
Bank errorsGroup of answer choicesmust be corrected by debits.are infrequent in occurrence.occur because of time lags.are corrected by making an adjusting entry on the depositor's books.
Solution
Bank errors are corrected by making an adjusting entry on the depositor's books. This is because when a bank makes an error, it is the responsibility of the depositor to identify and correct it. This is done by making an adjusting entry in their own books to reflect the correct amount. This could be a debit or credit entry, depending on the nature of the error. For example, if the bank has mistakenly credited an account with too much money, the depositor would make a debit entry to correct it. Conversely, if the bank has not credited enough money, the depositor would make a credit entry. It's important to note that while bank errors can occur, they are generally infrequent.
Similar Questions
Which of the following items on a bank reconciliation would require an adjusting entry on the company’s books? Group of answer choices An outstanding deposit Outstanding cheques An error by the bank A bank service charge
Reverse faulting can result in abrupt changes in deposits across the fault.Group of answer choicesTrueFalse
A bank statement provides information about all of the following, exceptGroup of answer choicesCheck cleared during the periodNSF checksBank charges for the periodErrors made by the company
When you changed the value of a deposit in the Mailing List table, which of the following was true?Group of answer choicesThe formula had to be updated manuallyThe formula updated automaticallyThe formula had to be reformattedThe formula had to be recreated
A deposit made by a company will appear on the bank statement as aGroup of answer choicesdebit memorandum.credit.credit memorandum.debit.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.