A bank reconciliation should be prepared
A) whenever the bank refuses to lend the company money
B) to explain any difference between the company's balance per books with the balance per bank
C) by the company's bank
D) by the person who is authorized to sign checks

Question

Quizplus · Accepted Answer

A bank reconciliation is prepared to explain any difference between the company's balance per books with the balance per bank. It helps identify errors, fraud, or other discrepancies in the cash balances. The other options are unrelated to the process of preparing a bank reconciliation.

A Bank Reconciliation Should Be Prepared