What is a bank reconciliation? Select one: 1. A statement sent monthly by a bank

Question

What is a bank reconciliation? Select one: 1. A statement sent monthly by a bank to a depositor that lists all deposits, checks paid, and other credits and charges to the depositor’s account for the month. 2. A schedule that accounts for differences between a firm’s cash balance as shown on its bank statement and the balance shown in its general ledger Cash account 3 A formal financial statement that lists all of a firm’s bank account balances 4. A merger of two banks that previously were competitors

Explanation / Answer

ANS:2. A schedule that accounts for differences between a firm’s cash balance as shown on its bank statement and the balance shown in its general ledger Cash account

Explanation: A bank reconciliation statement is a process that explains the difference on a specified date between the bank balance shown in an organization's bank statement, as supplied by the bank and the corresponding amount shown in the organization's own accounting records.

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