An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is a(n):
A)Analysis of debits and credits.
B)Internal audit.
C)Bank audit.
D)Trial reconciliation.
E)Bank reconciliation.

Question

Quizplus · Accepted Answer

The difference between the balance of a chequing account shown in the depositor's records and the balance shown on the bank statement is reconciled with a bank reconciliation. This process involves comparing the depositor's records with the bank statement, identifying any outstanding or uncleared transactions, and making adjustments to both the depositor's records and the bank statement to arrive at an accurate balance. This is also known as a bank reconciliation statement.

An Analysis That Explains the Difference Between the Balance of a Chequing