Multiple Choice
In the context of bank reconciliation, in which account would you expect to see payments received but not yet deposited?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
When should a bank reconciliation be prepared?
A
Whenever a company receives a bank statement, regardless of timing
B
At regular intervals, such as monthly, to ensure the accuracy of cash records
C
Only when the bank requests it
D
Only at the end of the fiscal year
Verified step by step guidance1
Understand the purpose of a bank reconciliation: It is a process used to compare the company's cash records with the bank statement to identify discrepancies and ensure accuracy.
Recognize the importance of regular intervals: Bank reconciliations should be prepared periodically, such as monthly, to maintain accurate financial records and detect errors or fraud promptly.
Consider the timing of bank statements: Companies typically receive bank statements at regular intervals, which provides an opportunity to reconcile the records systematically.
Avoid misconceptions: Bank reconciliations are not limited to requests from the bank or the end of the fiscal year. They are a proactive measure for financial accuracy.
Conclude that the correct practice is to prepare bank reconciliations at regular intervals, such as monthly, to ensure the accuracy of cash records and maintain financial integrity.
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