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Financial Accounting Terms Dictionary

Financial Accounting Terms
Bank Reconciliation

U.S. GAAP Codification, Accounting Terms, Accounting Textbooks

Financial Accounting, Intermediate Accounting, Advanced Accounting

Accounting Standards ASC, Accounting by Topic

Bank Reconciliation

Bank reconciliation	Correct balance of the deposit account = balance from bank statement + deposits in transit - outstanding checks Correct balance of the deposit account = book balance + deposits not reflected in the book - not sufficient funds (NSF) checks - bank service charges
Deposits in transit	An example Deposit checks were sent to the bank, but not reflected on the bank statement yet Deposits in transit are added to the balance from bank statement to get correct balance of deposit
Outstanding checks	An example Checks were issued by the company, but not paid by the bank yet Outstanding checks are deducted from the bank statement balance to get correct balance of deposit
Deposits not reflected in the book	An example Deposits were reflected on the bank statement, but the company was not aware of the deposits yet Such deposits are added to the book balance to get correct balance of deposit
Not sufficient funds (NSF) checks	An example If the bank account of the check issuer does not have sufficient funds to pay the check amount, such checks are called not sufficient funds (NSF) checks Not sufficient funds checks are deducted from the book balance to get correct balance of deposit
Bank service charges	Bank service charges are deducted from the book balance to get correct balance of deposit

An example of bank reconciliation

Balance from bank statement	$510,000
Book balance of bank deposit	$520,000
Deposits in transit	$20,000
Outstanding checks	$30,000
Deposits not reflected in the book	$10,000
Not sufficient funds checks	$25,000
Bank service charges	$5,000

Bank reconciliation

Correct balance of the deposit account
   = balance from bank statement
   + deposits in transit
    - outstanding checks

   = $510,000 + $20,000 - $30,000
   = $500,000

Correct balance of the deposit account
   = book balance
   + deposits not reflected in the book
    - not sufficient funds (NSF) checks
    - bank service charges

   = $520,000 + $10,000 - $25,000 - $5,000
   = $500,000

Another example of bank reconciliation

Balance from bank statement	$360,000
Book balance of bank deposit	$359,000
Deposits in transit	$5,000
Outstanding checks	$9,000
Deposits not reflected in the book	$6,000
Not sufficient funds checks	$8,000
Bank service charges	$1,000

Bank reconciliation

Correct balance of the deposit account
   = balance from bank statement
   + deposits in transit
    - outstanding checks

   = $360,000 + $5,000 - $9,000
   = $356,000

Correct balance of the deposit account
   = book balance
   + deposits not reflected in the book
    - not sufficient funds (NSF) checks
    - bank service charges

= $359,000 + $6,000 - $8,000 - $1,000
   = $356,000

U.S. GAAP by Codification Topic

105 GAAP Hierarchy
105 GAAP History

205 Presentation of Financial Statements
205-20 Discontinued Operations
210 Balance Sheet
210-20 Offsetting
220 Comprehensive Income
225 Income Statement
225-20 Extraordinary and Unusual Items
230 Statement of Cash Flows
250 Accounting Changes and Error Corrections
260 Earnings per Share
270 Interim Reporting

310 Impairment of a Loan
320 Investment Securities
320 Other-Than-Temporary Impairments, FSP FAS 115-2
320-10-05 Overview of Investments in Other Entities
320-10-35 Reclassification of Investments in Securities
323-10 Equity Method Investments
323-30 Investments in Partnerships and Joint Ventures
325-20 Cost Method Investments
330 Inventory

340-20 Capitalized Advertising Costs
350-20 Goodwill
350-30 Intangibles Other than Goodwill
350-40 Internal-Use Software
350-50 Website Development Costs
360 Property, Plant and Equipment
360-20 Real Estate Sales

410 Asset Retirement and Environmental Obligations
420 Exit or Disposal Cost Obligations
450 Contingencies
450-20 Loss Contingencies
450-30 Gain Contingencies
480 Redeemable Financial Instruments

505-20 Stock Dividends, Stock Splits
505-30 Treasury Stock

605 SEC Staff Accounting Bulletin, Topic 13
605-25 Revenue Recognition - Multiple Element Arrangements

715-30 Defined Benefit Plans - Pension
718 Share-Based Payment
730 Research and Development
730-20 Research and Development Arrangements

805 Business Combinations
810 Consolidation
810 Noncontrolling Interests
810 Consolidation of Variable Interest Entities, SFAS 167

815 Derivatives and Hedging Overview

820 Fair Value Measurements
820 Fair value when the markets are not active, FSP FAS 157-4
825 Fair Value Option

830 Foreign Currency Matters
830-20 Foreign Currency Transactions
830-30 Translation of Financial Statements
835 Interest
835-20 Capitalization of Interest
835-30 Imputation of Interest

840 Leases
840-20 Operating Leases
840-30 Capital Leases
840-40 Sale-Leaseback Transactions
845 Nonmonetary Transactions

855 Subsequent Events
860-20 Sale of Financial Assets, SFAS 166
860-50 Servicing Assets and Liabilities, SFAS 156

985-20 Costs of software to be sold

U.S. GAAP by Topic

Accounting Topics