Question

A bank reconciliation should be prepared a. to explain any difference between the company's balance per books with the balance per bank b. by the company's bank c. by the person who is authorized to sign checks d. whenever the bank refuses to lend the company money

Answer 1

Answer:

a.

Explanation:

A bank reconciliation refers to the balancing the company's accounting records (the books) in regards to the cash accounts of that company, with the information from the bank statements that they have. Based on this information, it can be said that A bank reconciliation should be prepared to explain any difference between the depositor's balance per books with the balance per bank. Otherwise these inconsistencies may be considered as fraud.