Which of the following statements concerning reconciliation accounts are true?
A)Reconciliation account for customers is accounts payable
B)Reconciliation account for customers is accounts receivable
C)Reconciliation account for vendors is accounts payable
D)Reconciliation account for vendors is accounts receivable

Question

Which of the following statements concerning reconciliation accounts are true? 
A)Reconciliation account for customers is accounts payable
B)Reconciliation account for customers is accounts receivable
C)Reconciliation account for vendors is accounts payable
D)Reconciliation account for vendors is accounts receivable

Quizplus · Accepted Answer

A reconciliation account is an intermediary account that allows for the aggregation of multiple sub-accounts into one single balance. Reconciliation accounts for customers are used to keep track of accounts receivable, not accounts payable. On the other hand, reconciliation accounts for vendors are used to keep track of accounts payable, not accounts receivable. Therefore, option B and C are the correct choices.

Which of the Following Statements Concerning Reconciliation Accounts Are True