Which of the following is NOT a reason why a bank reconciliation is necessary?
A)The company has transactions that the bank has not recorded.
B)Petty cash has a low balance.
C)The bank has transactions that the company has not recorded.

Question

Quizplus · Accepted Answer

Petty cash having a low balance is not directly related to the need for a bank reconciliation. A bank reconciliation is necessary to identify and reconcile any differences between a company's records and the bank's records, ensuring accurate financial information and preventing fraud or errors. The other options mentioned, transactions not recorded by the bank or the company, are common reasons why a bank reconciliation is necessary.

Which of the Following Is NOT a Reason Why a Bank