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:

Privately Owned

Properties or businesses that are owned by individuals or corporations rather than by the government or public.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own assets, incur liabilities, and conduct business.

Closely Held

A business structure where the ownership is concentrated in a small group of individuals, often family members.

Agency Relationships

A legal and fiduciary relationship between two parties, where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.