Bank reconciliation statement is prepared by____________?
Correct answer: A. Accountant of the business
- A. Accountant of the business
- B. Manager of the business
- C. Controller of the bank
- D. Accountant of the bank
Explanation
The business’s accountant prepares the bank reconciliation by comparing the cash book with the bank statement and explaining differences. The bank’s accountant prepares the bank statement, not the business’s reconciliation.
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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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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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