Financial Accounting (ACCT 102) Bank Reconciliation, Cash Controls, and Cash Flow Traps Exam Review
Indiana University Bloomington
Financial Accounting (ACCT 102) | Exam Review

Overview
A finals-week exam review that helps ACCT 102 students build a clean bank reconciliation, record cash-related adjustments, and avoid the most common statement-of-cash-flows mistakes.

Key topics
•bank reconciliation structure (book vs bank)
•outstanding checks and deposits in transit
•NSF checks and bank service fees
•errors and correcting entries
•cash controls and fraud red flags
•cash flow classification pitfalls (operating/investing/financing)

Suggested study tasks
•complete two full bank reconciliations from a messy bank statement
•write the journal entries for 8 common reconciling items
•label 12 cash flows as operating/investing/financing
•spot 10 internal-control weaknesses in mini-scenarios
•do a 10-minute timed ?cash-only? exam drill

Common pitfalls
•forgetting that deposits in transit affect the bank side
•recording outstanding checks as journal entries
•mixing book errors with bank errors
•misclassifying interest/dividends in the cash flow statement
•skipping the cash proof step