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

Question

Quizplus · Accepted Answer

A bank reconciliation is the process of comparing the depositor's records with the bank statement to identify any differences between the two balances. This analysis helps to identify errors, omissions, or fraudulent activity in the account. Internal audit, bank audit, trial reconciliation, and analysis of debits and credits may be part of the bank reconciliation process but are not the primary analysis to explain differences in the account balance.

An Analysis That Explains Any Differences Between the Checking Account