Which of the Following Is TRUE About a Bank Reconciliation

question 95

Multiple Choice

Which of the following is TRUE about a bank reconciliation?

• A) A bank reconciliation should not be prepared by an employee who handles cash transactions.
• B) A bank reconciliation cannot be prepared with online banking.
• C) A bank reconciliation is a financial statement.
• D) A bank reconciliation guarantees that no errors have been made.

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Definitions:

Useful Lives

The estimated period during which an asset is expected to be usable for the purpose for which it was acquired.

Revaluation Surplus

An increase in the carrying amount of an asset to its fair value, exceeding its previously recorded nominal value, recognized directly in equity.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the owner's claim against the company's assets.