Question

All reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the _________

A) Cash account
B) Bank statement
C) Accounts Receivable
D) Accounts Payable

Answer 1

The answer is A) Cash account. Reconciling items in determining the adjusted cash balance per books require the depositor to make adjusting journal entries to the cash account.

Step-by-step explanation:

The correct answer is A) Cash account.

Reconciling items in determining the adjusted cash balance per books refer to the differences between the cash account balance on the company's books (as shown on the general ledger) and the cash balance reported on the bank statement.

These differences can arise from various factors such as outstanding checks, deposits in transit, bank errors, or adjustments for fees or interest.

To bring the cash balance per books in line with the cash balance per the bank statement, the depositor needs to make adjusting journal entries to the cash account to account for these reconciling items.