BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Verify the amounts on the bank statement and consistent or compatible with the amounts in the company’s cash account in its general ledger and vice versa.
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Help a business keep track of their money
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Show a business how much they spent in a year
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Show a monthly recap of charges in a business
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Detailed explanation-1: -The main purpose of a bank reconciliation statement (BRS) is to help companies identify errors that can affect their tax and financial reporting. Bank reconciliations are also an essential way to prevent and detect fraud.
Detailed explanation-2: -Bank Reconciliation Statement is a record book of the transactions of a bank account. This statement helps the account holders to check and keep track of their funds and update the transaction record that they have made.
Detailed explanation-3: -Bank reconciliation statement is a report which compares the bank balance as per company’s accounting records with the balance stated in the bank statement. It is normal for a company’s bank balance as per the accounting records to differ from the balance as per bank statement due to timing differences.