Understanding Bank Reconciliation Terms

What is a transaction?

• A report summarising bank activity

• An exchange of goods, services, or funds between parties

• A type of bank fee

• A document detailing cash payments

What is a bank statement?

• A monthly report summarising an account's transactions

• A list of pending transactions

• A record of all cash payments

• A document for recording income sources

What does a cash payment journal track?

• All cash received by the business

• All cash payments made by a business

• Transactions involving credit sales

• Bank fees incurred by the business

What is the purpose of a cash receipts journal?

• To summarise bank fees and charges

• To document outstanding payments

• To capture all cash received by a business

• To record cash payments made

What does OD mean in banking terms?

• Overdue

• Open Deposit

• Outstanding Deposit

• Overdrawn

What does TFR indicate in banking?

• Time-Fixed Rate

• Total Fund Return

• Transfers from other banks or branches

• Transaction Fee Rate

What does DIV represent?

• Dividend

• Deposit

• Discount Voucher

• Debit Instruction

What does C/C stand for in banking terms?

• Cash Collection

• Current Account

• Credit Card

• Cash and/or Cheque

What does "deposits not yet credited" refer to?

• Deposits made too late to appear on the current bank statement

• Withdrawals processed by the bank

• Cash payments received

• Deposits that have cleared

What are dishonoured cheques?

• Cheques that have been lost in the mail

• Cheques that have bounced or been declined by the bank

• Cheques that are still outstanding

• Cheques that have been successfully processed