The bank statement is based on the bank's records, not the depositor's records. It shows both additions (deposits) and reductions (withdrawals) to the account. While it may not show a daily running balance after each day's transactions, it will show the beginning and ending balances for the statement period.

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The Bank Statement

Question 72

Multiple Choice

The bank statement

A) is based on the bank's records.
B) is based on the depositor's records.
C) shows reductions but not additions to the account.
D) does not show a daily running balance after each day's transactions.

Correct Answer: