Provide answers to the following accounting questions: When is a liability recorded as a credit or debit? What does a bank reconciliation statement aim to achieve? How do you account for unpresented c

When money is deposited into a bank account, the bank's liability to the customer increases. In banking terms, an increase in liability is recorded as a credit.

• B. a credit

When money is withdrawn from a bank account, the bank's liability to the customer decreases. In banking terms, a decrease in liability is recorded as a debit.

• A. a debit

An account holder prepares a bank reconciliation statement to identify and explain the differences between the cash balance in their own records (cash book) and the balance shown on the bank statement. The ultimate goal is to determine the correct, reconciled bank account balance.

• C. The Bank account balance

An unpresented cheque is a cheque that has been issued by the business and recorded in its cash book, but has not yet been presented to the bank for payment. Therefore, the bank statement balance is higher than it should be from the business's perspective. To find the closing balance as per the business bank account (reconciled balance), you subtract the unpresented cheque from the bank statement balance.

A bank statement is a record of transactions processed by the bank. While the bank generates this from its own internal records, from the customer's perspective, a cheque butt is the customer's record of a cheque issued. When this cheque is presented to the bank, it will appear as a debit on the bank statement. Thus, the information on the cheque butt corresponds to an entry on the bank statement.

• C. cheque butt