Which of the following, when prepared correctly, ensures that all cash transactions have beenaccounted for and that the bank and book records of cash are correct?

Question

Quizplus · Accepted Answer

Bank reconciliation involves comparing the bank statement with the organization's cash records to ensure that all transactions have been recorded accurately and any discrepancies have been identified and corrected. This ensures that all cash transactions have been accounted for and the bank and book records of cash are correct. Setting up a lock-box system, bank statement, and bank remittance may all be useful in managing cash transactions but do not specifically address the need to ensure accurate record-keeping and reconciliation.

Which of the Following, When Prepared Correctly, Ensures That All