Bank reconciliation is a statement prepared to reconcile__________?
Correct answer: D. Cash as per cash book with bank balance as per bank pass book
- A. Trial balance
- B. Cash book
- C. Bank A/c
- D. Cash as per cash book with bank balance as per bank pass book
Explanation
Bank reconciliation compares the cash balance recorded by the business with the corresponding bank balance shown in the pass book or bank statement. This identifies timing differences and recording errors.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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More Accounting Principles questions
Benefits of preparing Bank Reconciliation Statement includes___________?
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