Comparing a company's cash balance in its accounting records with the bank statement is called ________.

Question

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Comparing a company's cash balance in accounting records with the bank statement is called a bank reconciliation. This process helps identify any discrepancies and ensures that both records match. An external audit is conducted by an independent auditor, while internal audit refers to an audit conducted by the company's own employees. Adjusting the books refers to the process of making necessary adjustments to ensure that the financial statements are accurate.

Comparing a Company's Cash Balance in Its Accounting Records with the Bank