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:

Current Profits

The amount of net income that a company has generated during the current fiscal period, reflecting its financial performance in the short term.

Production

The process of creating, manufacturing, or assembling goods and services.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead.