Which of the following is a benefit of online banking?
A) The business can reconcile to the bank's balance at any time.
B) The bank reconciliation is not necessary.
C) The business can reduce their internal controls over cash receipts.
D) A company's book balance will always equal the bank's balance.

Question

Quizplus · Accepted Answer

Online banking allows businesses to access their account balances in real-time, which enables them to reconcile their books to the bank's balance at any time. This leads to better control over cash management and helps prevent errors or fraud. The bank reconciliation process is still necessary, but online banking simplifies it and reduces the time and effort required to reconcile accounts. Internal controls over cash receipts should not be reduced because of online banking, as proper controls are essential for preventing fraud and ensuring accurate financial reporting. A company's book balance may not always equal the bank's balance due to factors such as outstanding checks and deposits in transit.

Which of the Following Is a Benefit of Online Banking