101. A savings account or certificate of deposit that imposes a substantial penalty for early withdrawals should not be classified as Cash on the balance sheet.
102. For a business, Cash generally includes currency, customers' checks, and some savings accounts.
103. After the check is signed, the third employee is the one who records the check in the ledger and examines the appropriate supporting documents.
104. A bank statement debit memo describes a transaction that increases a customer's account balance.
105. The usual form for a bank reconciliation begins with the ending cash balance shown on the bank statement and reconciles it to the ending cash balance on the company's books.
106. In preparing a bank reconciliation, typical adjustments to the bank balance are deposits in transit and outstanding checks.
107. In preparing a bank reconciliation, typical adjustments to the book balance include bank service charges, customer NSF checks, and certified checks.
108. All journal entries made related to bank reconciliations include an expense or revenue account.
109. All adjustments to the unadjusted cash balance on a bank reconciliation require journal entries, but no adjustments to the bank statement balance require journal entries.
110. Preparing a bank reconciliation is a requirement to obtain an unqualified audit opinion, but is not an important internal control for a business.