A bank reconciliation should be prepared periodically because:

Question

Quizplus · Accepted Answer

A bank reconciliation should be prepared periodically to determine any differences between the depositor's records and the bank's records. This helps to discover and correct errors made by either party. Option A is incorrect because a bank reconciliation is prepared precisely because the two records are not in agreement. Option B is incorrect because all of the bank's transactions have been recorded; the issue is whether they have been recorded accurately. Option D is incorrect because the bank's records are not the primary focus of the reconciliation; it is intended to ensure that both records are in agreement.

A Bank Reconciliation Should Be Prepared Periodically Because