The Main Purpose of a Bank Reconciliation Is

question 63

Multiple Choice

The main purpose of a bank reconciliation is:

• A) to prove the accuracy of the debtors' ledger.
• B) to prove the accuracy of the general ledger.
• C) to prove the accuracy of the ledger bank account.
• D) to prove the accuracy of the bookkeeper.

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Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets.

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to issue new equity or take on additional debt.

Utilizes Assets

The process of efficiently using company resources or assets to generate revenue or achieve strategic objectives.

External Financing

It refers to the funds a business obtains from outside sources, such as bank loans, venture capital, or issuing bonds or equity, to finance its operations or expansion.