A bank reconciliation should be prepared
A) whenever the bank refuses to lend the company money.
B) when an employee is suspected of fraud.
C) to explain any difference between the depositor's balance per books and the balance per bank.
D) by the person who is authorized to sign checks.

Question

Quizplus · Accepted Answer

A bank reconciliation is prepared to explain any difference between the depositor's balance per books and the balance per bank. It is a process of matching the bank statement transactions with the company's books and making necessary adjustments for any discrepancies. It is not related to the bank's lending policy or signing checks, nor is it typically used to investigate fraud (although it may uncover fraudulent activity).

A Bank Reconciliation Should Be Prepared