Multiple Choice
When you deposit a check using a mobile banking app, for how long should you typically keep the physical check before destroying it?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
Multiple Choice
Why is it important to review your checking account statement during the bank reconciliation process?
A
To automatically update your checkbook register
B
To avoid paying taxes on your account balance
C
To identify errors or unauthorized transactions that may require correction
D
To increase the interest rate on your account
Verified step by step guidance1
Understand the purpose of bank reconciliation: Bank reconciliation is the process of comparing your checking account statement with your own records (e.g., checkbook register) to ensure accuracy and identify discrepancies.
Review the checking account statement: Carefully examine the transactions listed on the statement, including deposits, withdrawals, and fees, to ensure they match your records.
Identify errors or unauthorized transactions: Look for any discrepancies, such as incorrect amounts, duplicate charges, or transactions you did not authorize. These may require correction or further investigation.
Update your checkbook register: Adjust your records to reflect any legitimate transactions that were missing or incorrectly recorded in your checkbook register.
Contact the bank if necessary: If you find errors or unauthorized transactions, notify your bank promptly to resolve the issue and prevent further problems.
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