Accounting / July 18, 2018 / Khloe Santiago
Reconciling an account often means proving or documenting that an account balance is correct. For example, we reconcile the balance in the general ledger account Cash in Checking to the balance shown on the bank statement. The objective is to report the correct amount in the general ledger account Cash in Checking. You will often need to adjust the general ledger account balance for items appearing on the bank statement that were not entered in the general ledger account.
A positive net interest margin indicates that an entity has invested its funds efficiently while a negative return implies that the bank or investment firm has not invested efficiently. In a negative net interest margin scenario, the company would have been better served by applying the investment funds toward outstanding debt or utilizing the funds for more profitable revenue streams.
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