A bank reconciliation is primarily a clerical activity, which verifies cash transactions and, as such, does not identify any entries that should be made in the depositor's books.

Question

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A bank reconciliation identifies any discrepancies between the bank's records and the depositor's records. These discrepancies may require adjusting entries in the depositor's books, such as recording bank fees or interest income. Therefore, a bank reconciliation can result in identifying entries that should be made in the depositor's books.

A Bank Reconciliation Is Primarily a Clerical Activity, Which Verifies