It Is Not Necessary for Businesses to Reconcile Their Chequing

question 8

True/False

It is not necessary for businesses to reconcile their chequing accounts since banks keep accurate records and provide internal control support for cash.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in the average cost per unit of output decreasing with increasing scale.

Conglomerate Merger

A type of merger where two companies operating in unrelated business areas combine their operations.

Diversification

An investment strategy to reduce risk by allocating investments amongst various financial instruments, industries, or other categories.

Perspective of Stockholders

The viewpoint or interests of shareholders in a corporation, often focused on return on investment, governance, and financial health.