ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To invest
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To be in debt
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To match your bank statement with your checkbook
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None of the above
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Detailed explanation-1: -A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.
Detailed explanation-2: -When you reconcile your bank account you are comparing the transactions recorded in your accounting software with the transactions shown on your bank statement. You need to adjust your accounting records to agree with the bank and record monthly fees and electronic fund transactions.
Detailed explanation-3: -A bank reconciliation compares the cash account from your business’s general ledger to the ending balance on the bank statement for the same time period. When you perform a bank reconciliation, you are ensuring your business records have captured all cash transactions accurately.
Detailed explanation-4: -Get bank records. Gather your business records. Find a place to start. Go over your bank deposits and withdrawals. Check the income and expenses in your books. Adjust the bank statements. Adjust the cash balance. Compare the end balances. 30-Sept-2022