Which of the following is a correct statement regarding the bank reconciliation?
A) The bank reconciliation is part of the general ledger.
B) Journal entries need to be made for all transactions on the bank side to get the accounts up-to-date.
C) Journal entries need to be made for all transactions on the book side to get the accounts up-to-date.
D) The bank reconciliation is part of the journal.

Question

Quizplus · Accepted Answer

Journal entries need to be made for all transactions on the book side to get the accounts up-to-date. The bank reconciliation is a process of comparing the balance on the bank statement to the balance in the company's accounting records (book side) and making necessary adjustments to reconcile the difference. Journal entries are made on the book side to update the accounts and make sure they match the bank statement. The bank reconciliation is not part of the general ledger or the journal.

Which of the Following Is a Correct Statement Regarding the Bank