The process of analyzing the differences between the bank statement balance and the checkbook balance is:
A)Checks outstanding
B)Bank audit
C)Deposits in transit
D)Bank reconciliation
E)None of these

Question

Quizplus · Accepted Answer

The process of analyzing the differences between the bank statement balance and the checkbook balance is called bank reconciliation. This involves comparing the two balances and identifying any discrepancies such as outstanding checks or deposits in transit. The purpose of bank reconciliation is to ensure that the bank account's record matches the company's record and to identify any errors or fraudulent activities. Therefore, the best choice is D - Bank reconciliation.

The Process of Analyzing the Differences Between the Bank Statement