Multiple Choice
One of the most important internal controls for cash is the bank reconciliation. What is the primary purpose of preparing a bank reconciliation statement?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
Multiple Choice
Daisy reads her bank statement and finds an error. She should:
A
Adjust her own records to match the incorrect bank statement.
B
Wait until the next month’s statement to see if the error persists.
C
Contact the bank to report the error and request a correction.
D
Ignore the error, as it will likely resolve itself.
Verified step by step guidance1
Step 1: Understand the nature of the error by carefully reviewing the bank statement and comparing it with Daisy's own financial records to identify discrepancies.
Step 2: Gather supporting documentation, such as receipts, transaction records, or any other evidence that can substantiate the error found in the bank statement.
Step 3: Contact the bank directly to report the error. This can typically be done through customer service channels such as phone, email, or visiting the bank in person.
Step 4: Clearly explain the error to the bank representative, providing all relevant details and supporting documentation to help them investigate and resolve the issue.
Step 5: Follow up with the bank to ensure the error is corrected and request a revised bank statement if necessary. Keep records of all communications for future reference.
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