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What is the systematic process of verifying and matching accounting bank records against bank statement balances called?

ATrial Balance Preparation
BCash Flow Budgeting
CAuditing Ledger Entries
DBank Reconciliation

Explanation

* Bank Reconciliation adjusts company cash book balance and bank statement balance to reconcile timing differences and errors.
* Key reconciliation items: Outstanding checks, deposits in transit, bank service fees, and interest earned.
* Crucial internal control tool for detecting cash misstatements.

Exam Relevance
  • Topic: Financial Accounting
  • Subtopic: Cash & Internal Controls
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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