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

---

Definitions:

Automating

The process of using technology to perform tasks without human intervention, often resulting in increased efficiency and reduced error.

Payback Period

The time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Proposed Investment

A planned or suggested allocation of financial resources into a project or asset with an expectation of generating returns in the future.