When Preparing a Bank Reconciliation, If the Adjusted Book Balance

question 30

True/False

When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are equal, then there is no need to have an external auditor test internal controls for the "cash" account.

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Definitions:

Ending Equity

The total value of all ownership interests in the company at the end of the accounting period, after all revenues and expenses are accounted for.

Beginning Equity

The value of an owner's interest in a company at the start of an accounting period.

Revenues

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Operating Activity

Transactions related to the primary activities of a business, such as purchasing inventory, selling goods or services, and paying salaries.