51. Deposits in transit are deposits made and recorded by the depositor but not yet recorded on the bank statement.
52. It is not necessary for businesses to reconcile their checking accounts since banks keep accurate records and provide internal control support for cash.
53. A bank reconciliation usually yields both an adjusted bank balance and an adjusted book balance.
54. After preparing a bank reconciliation, adjustments must be made for items reconciling the bank balance and items reconciling the book balance.
55. An NSF check for $17.50 would be recorded as a debit to Cash and a credit to Accounts Receivable.
56. The purposes and principles of internal control are fundamentally the same across the globe. However, cultural differences sometimes suggest different emphasis on the mix of control procedures.
57. The steps to reconcile the balance of the bank statement to the adjusted balance include adding outstanding checks, deposits, and bank service charges.
58. When merchandise is needed, a department manager must inform the purchasing department of this need by preparing and signing a purchase requisition, which lists the merchandise needed and requests that it be purchased.
59. An invoice is an itemized statement of goods prepared by the vendor listing the customer's name, items sold, sales prices, and terms of sale.
60. The voucher register is a journal that is used to record all approved vouchers within the company.