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EXIT INTERVIEW QUESTIONS
1. Under the adjusted balance method, the book balance and the bank balance are brought to a correct cash balance that must appear on the balance sheet. The credit memos are always added to the book balance and the debit memos are always deducted from the book balance.
Book Reconciling Items:
Credit Memos – Items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipt. They increase the bank balance.
Debit Memos - Items not representing checks paid by bank which are charged by the bank to the account of the depositor but not yet recorded by the depositor as cash disbursement. They decrease the bank balance.
Errors.
Bank Reconciling Items
Deposit in Transit, Outstanding Check, Errors
2. Accounting cycle are: 1. Collecting and analyzing data from transactions and events. - develop a chart of accounts as part of setting up your accounting and bookkeeping system. The chart of accounts is an index of all the accounts where the company files its financial information. A source document in an accounting transaction is evidence that the transaction has occurred. It should be recorded as a journal entry as soon as possible. Examples are canceled checks, invoices, purchase orders, and other business documents. 2. Putting transactions into the general journal. - When a small business makes a financial transaction, they make a journal entry in their accounting journal in order to record the transaction. There are actually two entries made - one is a debit to the appropriate account and the other is a credit. 3. Posting entries to the general ledger. - is the main accounting record for your business. All of the business's financial transactions are taken from the general accounting journal and recorded in the general ledger in a summary form. 4.…...

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