Which of the following is true about bank reconciliation statement —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Which of the following is true about bank reconciliation statement —
(A) Bank reconciliation statement need not to be prepared where the balance of cash book and pass book matches
(B) Bank reconciliation statement is to be prepared necessarily as per the Income-tax Act, 1961
(C) Bank reconciliation statement is prepared on yearly basis
(D) Bank reconciliation statement is to be prepared and supplied by bank.

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) Bank reconciliation statement need not to be prepared where the balance of cash book and pass book matches. A reconciliation difference is not present when the two balances already agree; preparing a reconciliation can still be useful to check offsetting errors.

Topics: Fundamentals of Accounting and Auditing

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic