select all that apply\ndetermine the statements below that are true regarding why a bank reconciliation is…

select all that apply\ndetermine the statements below that are true regarding why a bank reconciliation is used. (check all that apply.)\n□ the bank reconciliation is useful in proving the accuracy of the cash account in the general ledger.\n□ the cash account balance in the general ledger is accurate, but the bank statement balance is not.\n□ we must reconcile the balance of the banks records and the cash account in the general ledger and explain or account for any differences in the two.\n□ timing differences between the bank statement and the depositors records are reflected in the bank reconciliation.

select all that apply\ndetermine the statements below that are true regarding why a bank reconciliation is used. (check all that apply.)\n□ the bank reconciliation is useful in proving the accuracy of the cash account in the general ledger.\n□ the cash account balance in the general ledger is accurate, but the bank statement balance is not.\n□ we must reconcile the balance of the banks records and the cash account in the general ledger and explain or account for any differences in the two.\n□ timing differences between the bank statement and the depositors records are reflected in the bank reconciliation.

Answer

Brief Explanations:

  • Bank reconciliation checks the accuracy of the cash - account in the general ledger by comparing it with bank records.
  • It accounts for differences between bank and company records, including timing differences. It doesn't assume the general ledger is always accurate and the bank statement is not.

Answer:

  • The bank reconciliation is useful in proving the accuracy of the Cash account in the general ledger.
  • We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two.
  • Timing differences between the bank statement and the depositor's records are reflected in the bank reconciliation.