Which One of the Statements Appearing Below Is True Regarding

question 104

Multiple Choice

Which one of the statements appearing below is true regarding bank reconciliations?

• A)A bank reconciliation is an external report prepared to report the cash balance to investors and creditors.
• B)After preparing a bank reconciliation,no adjusting journal entries need to be made for outstanding checks or deposits in transit.
• C)If a company's records show a different cash balance from that shown on the company's bank statement,either the company or the bank has made an error.
• D)The up-to-date ending cash balance on the bank statement side should not equal the up-to-date ending cash balance on the book side.

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Definitions:

Eurodollar Deposits

U.S. dollars deposited in banks outside the United States, often used in international transactions.