The purpose of a firm preparing a bank reconciliation statement is . . .
Select ONE answer:
- to ascertain the amount of financing, if any. which it may require in the future.
- to ascertain whether bank charges have been correctly calculated by the bank.
- to ascertain whether the correct amount of interest has been paid to the firm by the bank on all money on deposit.
- to reconcile the bank balance in the firm’s accounting records at a particular date with that shown on its bank statement on the same date.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct – A projection of the firm’s future cash inflows and outflows is required to ascertain the amount of financing, if any, which it may require in the future.
- Not correct – A calculation, not a reconciliation, is required to ascertain whether bank charges have been correctly calculated by the bank.
- Not correct – A calculation, not a reconciliation, is required to ascertain whether the correct amount of interest has been paid to the firm by the bank on all money on deposit.
- Correct
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