The following information relates to the company's November bank reconciliation:

-Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books?

Question

The following information relates to the company's November bank reconciliation:
 
-Refer to Dreammaker Kitchens. As a result of the bank reconciliation process, what is the net increase or decrease in cash which must be recorded on the company's books?

Quizplus · Accepted Answer

The net change in cash as a result of the bank reconciliation process is determined by adjusting the company's book balance of cash to reflect any items identified during reconciliation that are not yet recorded in the company's books. This includes outstanding checks, deposits in transit, bank errors, and any other adjustments. The correct answer depends on the specific adjustments identified in the reconciliation process for Dreammaker Kitchens, which would be detailed in the scenario leading to this question. Without those details, a precise explanation can't be provided, but typically, the net effect (increase or decrease) is the sum of all adjustments needed to align the book balance with the reconciled bank balance.

The Following Information Relates to the Company's November Bank Reconciliation