Which one of the following is TRUE of the bank reconciliation?
A) It should not be prepared by an employee who handles cash transactions.
B) It is prepared in place of the cash ledger.
C) It is a financial statement.
D) It guarantees that no errors have been made.

Question

Quizplus · Accepted Answer

The bank reconciliation should not be prepared by an employee who handles cash transactions to ensure the accuracy and objectivity of the reconciliation process. This is because an employee who handles cash transactions may have a vested interest in hiding any discrepancies or errors.

Which One of the Following Is TRUE of the Bank