An accounting term referring to the fact that an economic transaction for a particular ledger has yet to be recorded in that ledger. This is very common with the cash account for several different types of activities. Good examples include the use of a debit card in a purchase which is recorded at the bank but has yet to be recorded in the respective expense and then the credit to the cash account in the business books.
The bank reconciliation is a daily accounting function for every small business. In order to fully appreciate its value, the small business owner needs to understand the fundamentals of how bank reconciliations are performed. In […]