The bank reconciliation
A) should be prepared by an employee who records cash transactions
B) is part of the internal control system
C) is for information purposes only
D) is sent to the bank for verification

Question

Quizplus · Accepted Answer

The bank reconciliation is a key internal control procedure that ensures the accuracy and completeness of a company's cash transactions. It is usually prepared by someone separate from the employee who records cash transactions, and its purpose is to identify discrepancies between the company's cash balance and the bank's balance. It is not sent to the bank for verification and is not solely for information purposes.

The Bank Reconciliation