All adjustments to the unadjusted cash balance on a bank reconciliation require journal entries,but no adjustments to the bank statement balance require journal entries.

Question

Quizplus · Accepted Answer

This statement is true. The purpose of a bank reconciliation is to match the cash balance in the company's records with the cash balance reported by the bank. Any discrepancies require adjustments to the unadjusted cash balance, which must be recorded through journal entries. If there are no discrepancies or adjustments needed on the bank statement balance, then no journal entries are required.

All Adjustments to the Unadjusted Cash Balance on a Bank