What is Bank Reconciliation? - Definition, Purpose, Process & Examples


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What is the term for balancing a company's cash account to its bank account?

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1. What are checks or withdrawals that are recorded in the cash account but have not yet been recorded in the bank account?

2. In order to perform a bank reconciliation you will need the check register and which of the following?

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About This Quiz & Worksheet

Bank reconciliation is an important process in business and banking, and this quiz/worksheet will help you test your understanding of its definition and related terms.

Quiz & Worksheet Goals

In these assessments you'll be tested on the definition and practices of:

  • Balancing a company's cash account to its bank account
  • Checks that are recorded in cash accounts but haven't been recorded in bank accounts
  • Bank reconciliation
  • Outstanding credits
  • Outstanding debits

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Defining key concepts - ensure that you can accurately define the term for balancing a company's cash account to its bank account
  • Distinguishing differences - compare and contrast outstanding credits and outstanding debits
  • Information recall - access the knowledge you've gained regarding the conditions of bank reconciliation

Additional Learning

To learn more about bank reconciliation, review the accompanying lesson, What is Bank Reconciliation? - Definition, Purpose, Process and Examples. This lesson covers the following objectives:

  • Understand what goes into the process of bank reconciliation
  • Know what a bank statement describes
  • Understand what is shown by the check register
  • Define cleared in banking terms
  • Differentiate between outstanding credits and outstanding debits
  • Understand the process of transposition
  • Describe the purpose of bank reconciliation