Determining the difference between the balance on the bank statement and the balance in the cash account is:
A)reconciling the bank statement.
B)auditing the cash account.
C)preparing the trial balance.
D)running a spot check.

Question

Quizplus · Accepted Answer

Reconciling the bank statement involves comparing the transactions recorded in the bank statement with those recorded in the cash account. Any discrepancies between the two balances can be identified and resolved through this process. Auditing the cash account and preparing the trial balance are not specifically aimed at identifying discrepancies between the bank statement and the cash account. Running a spot check may help to identify errors, but it is not as comprehensive as reconciling the bank statement.

Determining the Difference Between the Balance on the Bank Statement