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

Question

Quizplus · Accepted Answer

A bank reconciliation is the process of comparing and adjusting the balance of the depositor's records with the balance shown on the bank statement. This helps to identify any discrepancies between the two balances, which could be due to various reasons such as outstanding checks, deposits in transit, fees or interest charges, and errors. The other options (A, B, C, E) are not specific to reconciling the checking account balance and do not address the differences between the depositor's records and bank statement.

An Analysis That Explains Differences Between the Checking Account Balance