To convert the accounts prepared on cash system of accounting into mercantile system of accounting, which of these adjustments is not necessary

Question

Quizplus · Accepted Answer

Reconciliation of cash with bank is not necessary for converting accounts from cash basis to accrual (mercantile) basis. This process involves adjusting for prepaid expenses, outstanding expenses, and distinguishing between revenue and capital items, not reconciling cash with bank balances.

To Convert the Accounts Prepared on Cash System of Accounting