Benefits of preparing Bank Reconciliation Statement includes___________?
Correct answer: D. All the three
- A. It bring out any errors committed in preparation of Cash book / Bank Pass Book
- B. Highlights under delay in clearance of cheques deposited but not credited
- C. Help know actual bank balance
- D. All the three
Explanation
Bank reconciliation can reveal errors in either book, identify cheques deposited but not yet credited, and establish the actual bank balance. Hence all three listed benefits apply.
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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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