Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
Correct answer: A. Cash book
- A. Cash book
- B. Cash payment journal
- C. Cash receipt journal
- D. Financial statements
Explanation
A bank reconciliation compares the balance and transactions shown by the bank statement with the business’s own cash book. Differences such as outstanding checks and deposits in transit are identified through this comparison.
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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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