Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 33)
What is the purpose of a bank reconciliation?
To record all transactions related to cash
To reconcile the cash balance in the bank statement with the cash balance in the business's records
To transfer the cash balance to the next accounting period
To manage petty cash
Explanation
A bank reconciliation ensures the accuracy of cash records by comparing the bank's statement with the company's internal cash records, identifying discrepancies.
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