A ________ is a document explaining the reasons for the difference between a depositor's Cash account in the ledger and the depositor's cash balance in its bank account.
A) bank statement
B) deposit receipt
C) bank reconciliation
D) remittance advice

Question

Quizplus · Accepted Answer

A bank reconciliation is the process of comparing a depositor's Cash account in the ledger with the depositor's cash balance in its bank account, and explaining any differences between the two. The bank reconciliation document explains the reasons for any discrepancies, such as outstanding checks or deposits in transit. Bank statement is a document from the bank showing the activity in the depositor's account, deposit receipt is a proof of deposit made by the depositor, and a remittance advice is a document sent to a supplier to indicate that payment has been made.

A ________ Is a Document Explaining the Reasons for the Difference