Provide the purpose of bank reconciliation and also state the time period the firm will use to prepare one.
Explanation of Solution
The purpose of preparing bank reconciliation is to have a control over the cash. Amount reported on the bank statement must be reconciled under the cash that is reported on the accounting records. The preparation of bank reconciliation by the company will be as often as the bank provides the statement, mostly once in every month of the year.
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Chapter 4 Solutions
Financial Accounting
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College