Which of the following is true concerning bank reconciliations?
A)The decline in the use of cheques will ultimately result in bank reconciliations no longer being needed.
B)Bank reconciliations are among the most difficult of accounting procedures.
C)Bank reconciliations confirm the accuracy of the cash balance on a particular date.
D)Bank reconciliations are done annually along with the closing off process.

Question

Quizplus · Accepted Answer

Bank reconciliations are used to ensure that the company's records of cash in its accounting system match the bank's records. The purpose of a bank reconciliation is to identify any differences between them and to ensure that the company's cash account is accurate. This process helps businesses to identify any errors or fraudulent activity that may have occurred. Bank reconciliations are typically performed monthly, but may be done more frequently depending on the size and nature of the business. The decline in the use of cheques may affect the frequency of bank reconciliations but will not eliminate the need for them. Bank reconciliations are not among the most difficult of accounting procedures and are not done annually along with the closing off process.

Which of the Following Is True Concerning Bank Reconciliations