Question #7 Bank Reconcilement (6 points)

To properly maintain controls over cash, companies must reconcile their Checking accounts on at least a monthly basis. And, consideration should be given to reconciling them on a more frequent basis depending on the volumes and amounts.

Required:

1. Explain how each of these timing differences occurs?
   1. Outstanding Checks
   2. Notes Payable collected by the Bank
   3. Non-Sufficient Funds (NSF) checks
2. How does each of the 3 impact the Companys Cash account, if it is impacted?