What Is an Important Benefit of Independent Preparation of Bank

question 18

Multiple Choice

What is an important benefit of independent preparation of bank reconciliations?

• A)an opportunity to independently check that cheques have two signatures
• B)the client being able to check that the bank is processing transactions correctly
• C)the ability to internally verify cash receipt and disbursement transactions
• D)the best time to carefully account for cheques issued

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Definitions:

Medium Of Exchange

A tool that assists in the buying, selling, or exchanging of goods among different parties.

Cash

Liquid currency including coins and banknotes that is used to facilitate transactions and settle debts.

Stocks

Shares of ownership in a company, representing a claim on part of the company's assets and earnings.

Fiat Money

Currency that a government has declared to be legal tender, but it is not backed by a physical commodity.