What Is the Primary Purpose of a Bank Reconciliation

question 88

Multiple Choice

What is the primary purpose of a bank reconciliation?

• A)To ensure that for all cash transactions debits equal credits.
• B)To ensure that customers are paying amounts owed on a timely basis.
• C)To ensure the bank balance per reconciliation is equal to the company balance per reconciliation.

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Definitions:

Period

Period refers to a length or portion of time, often defined in the context of financial reporting or cycles.

Current Liabilities

Obligations a company is required to pay within one year or an operating cycle, whichever is longer.

Due

Referring to an obligation or payment that is expected to be paid or fulfilled by a certain date.

Paid

The status of a financial obligation that has been fulfilled, indicating that no debt remains.