financial statement analysis coursera week 1 quiz answers

Reconciliation Types and Processes Practice Quiz

1. If your account balances don’t match at the end of the month, which of the following steps should you take to find the error? Select all that apply.

  • Check the balance difference and cross-reference for missing transactions of that amount
  • Check for transposition errors (number amounts being flip flopped)
  • Don’t worry about it. Books have a way of balancing out over time
  • Go line by line comparing ledger entries with the external account statement

2. If I use the balance sheet approach for reconciling the books each month, all of the following accounts would be reconciled except:

  • Accounts Payable
  • Cash
  • Inventory
  • Bank Statement

3. The reconciliation process can help with the following except:

  • Ensure account balances are accurate
  • Ensuring the business is profitable
  • Ensuring all transactions are accounted for
  • Ensure any fraudulent activities are more easily detected

4. True or False: The month-end close-out process for certain accounts is considered a type of reconciliation.

  • False
  • True

Reconciliation Source Documentation Types Practice Quiz

5. The original records that prove a specific transaction took place are referred to as:

  • Original records
  • Source Records
  • Original Documents
  • Source Documents

6. Which of the following is considered a source document?

  • Receipt
  • Bank Statement
  • Invoices
  • All the above

7. Which of the following is not considered an element of a source document?

  • Reference Number
  • Company Logo
  • Date of the Transaction
  • Description of the Transaction

Report Reconciliations vs Transactional Reconciliations Practice Quiz

8. Which of the following best describes the Transactional Method of Reconciliation?

  • The method of comparing the amount listed on a source document to the actual ending balance listed on the balance sheet
  • The method of reviewing existing transactions and source documents to confirm the amount was spent
  • The method of determining the amount that can be written off for an asset over time
  • The method of using credits and debits to record transactions

Shuffle Q/A 1

9. Which of the following best describes the Report Method of Reconciliation?

  • The method of determining the equity that an owner or shareholder currently has within the company
  • The method of comparing the amount listed on a source document to the actual ending balance listed on the balance sheet
  • The method of reviewing existing transactions and source documents to confirm the amount was spent
  • The method of determining if the books are balanced by using the equation Assets = Liabilities + Equity

10. Which of the following accounts can be reconciled using the report reconciliation method? (select all that apply)

  • Payroll
  • Long Term Note
  • Accounts Payable
  • Cash Account
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