Which of the following is TRUE about a bank reconciliation?
A)A bank reconciliation guarantees that no errors have been made.
B)A bank reconciliation should not be prepared by an employee who handles cash transactions.
C)A bank reconciliation cannot be prepared with internet banking.
D)A bank reconciliation is a financial statement.

Question

Quizplus · Accepted Answer

It is recommended that a bank reconciliation be prepared by someone who does not handle cash transactions, to ensure objectivity and to minimize the possibility of errors or fraud. Option A is incorrect because a bank reconciliation identifies errors, but does not guarantee that no errors have occurred. Option C is incorrect because internet banking can be used to help prepare a bank reconciliation. Option D is incorrect because a bank reconciliation is not a financial statement, but rather a tool for verifying the accuracy of financial records.

Which of the Following Is TRUE About a Bank Reconciliation