Which of the following is TRUE about a bank reconciliation?
A) A bank reconciliation should not be prepared by an employee who handles cash transactions.
B) A bank reconciliation cannot be prepared with online banking.
C) A bank reconciliation is a financial statement.
D) A bank reconciliation guarantees that no errors have been made.

Question

Quizplus · Accepted Answer

It is important to have a separation of duties in accounting. The person who handles cash transactions should not also be the one reconciling the bank statement to reduce the risk of fraud or errors.

Answer: None of the above
 Both B and C are not true statements. A bank reconciliation can be prepared using online banking, and it is not a financial statement. Additionally, statement D is incorrect as a bank reconciliation helps to identify errors and differences between the bank statement and financial records, but it does not guarantee that no errors have been made.

Which of the Following Is TRUE About a Bank Reconciliation