The Bank Reconciliation

question 89

Multiple Choice

The bank reconciliation

• A) must be done on a daily basis if the client uses electronic banking.
• B) should be performed by someone independent of the handling or recording of cash receipts.
• C) should be performed by someone who handles cash disbursements.
• D) ensures that no cash has been embezzled.

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Definitions:

Agent

A person who is performing an act for another person, called the principal

Principal

A person for whom another person, called the agent, is performing some act.

Asymmetric Information

A condition in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance in the transaction.

Buyer

An individual or entity that purchases goods or services from another entity, typically in the context of an economic market.