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 with the balance per bank.
D) by the person who is authorized to sign cheques.

Question

Quizplus · Accepted Answer

A bank reconciliation is prepared to identify and explain any difference between the depositor's balance per books (recorded in the company's accounting system) with the balance per bank (the balance reported by the bank) for a given period. This helps to identify any errors or discrepancies and reconcile them to ensure accurate financial reporting. It is not related to bank lending, employee fraud, or check signing authorization.

A Bank Reconciliation Should Be Prepared