Question

A bank reconciliation:Group of answer choicesis a formal financial statementboth A and B are correctis part of a sound internal control systemshould not be prepared by an employee who handles cash transactions

Answer 1

The Correct question reads;

Which of the following statements about bank reconciliations is correct?

a. Should not be prepared by an employee who handles cash transactions

b. Is part of a sound internal control system

c. Is a formal financial statement

d. Both (a) and (b) are correct

Answer:

a. Should not be prepared by an employee who handles cash transactions

Explanation:

It is only a bank that prepares a bank reconciliation statement. So, it is correct to say that a bank reconciliation statement should not be prepared by an employee who handles cash transactions.