The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.
Bank reconciliation reports confirm that payments have been processed and funds have been transferred to the bank account.
All fees charged from the account by the bank must be taken into account in the reconciliation act.
After all adjustments, the balance on the bank reconciliation statement must equal the final balance on the bank account.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
A bank run occurs when large groups of depositors withdraw their money from banks at the same time, out of fear that the institution will become insolvent.
A canceled check is a check that has been redeemed by cashing or depositing it, making the check invalid for further transactions and cannot be reused.