Which one of the statements appearing below is incorrect regarding bank reconciliations?
A)A bank reconciliation is an internal report prepared to report the cash balance to investors and creditors.
B)If a company's records show a different cash balance from that shown on the company's bank statement,either the company or the bank has made an error.
C)After preparing a bank reconciliation,no journal entries need to be made for outstanding checks or deposits in transit.
D)The up-to-date ending cash balance on the bank statement side will generally not equal the up-to-date ending cash balance on the book side.

Question

Quizplus · Accepted Answer

Since the company has already recorded outstanding checks or deposits in transit in its records,no journal entries are needed for these items.A bank reconciliation is an internal report prepared to verify the accuracy of the cash account.The up-to-date ending cash balance on both sides should always equal.A difference between the company's cash balance and the bank's balance can result from either errors or timing differences.

Which One of the Statements Appearing Below Is Incorrect Regarding