A bank reconciliation:
A)should be prepared by an employee who handles cash transactions.
B)is a formal financial statement.
C)is part of a sound internal control system.
D)is done only at the end of the fiscal year.

Question

Quizplus · Accepted Answer

Bank reconciliations are part of a sound internal control system, ensuring that the bank's records match the company's records for accuracy and fraud prevention. They are not formal financial statements, should not be prepared by employees handling cash (to prevent fraud), and can be done more frequently than just at the end of the fiscal year.

A Bank Reconciliation