Bank Reconciliation Statement: Meaning/Definition - SS1 Accounting Past Questions and Answers - page 1
What is a bank reconciliation statement?
A document that helps you compare your bank account transactions with the records held by your bank
A loan application form
A tax return form
A legal agreement
What does a bank reconciliation statement help you identify?
Discrepancies between your records and the bank's records
The amount of interest earned on your account
Your credit score
Your total account balance
Why is a bank reconciliation statement important?
It helps ensure that your account is accurate and up-to-date
It helps the bank keep track of your spending habits
It helps the government monitor your financial activity
It helps you earn more interest on your savings
What types of discrepancies can a bank reconciliation statement help you identify?
Deposits or withdrawals that have not yet cleared, bank fees or charges that you may not have recorded, or errors in your records
Cash withdrawals that you forgot to record, bank holiday schedules, or ATM fees
Credit card transactions, mortgage payments, or utility bills
None of the above
What can happen if there are discrepancies between your records and the bank's records?
A higher credit score
Higher interest rates on your account
Overdrafts bounced checks, or other issues
None of the above
What is the purpose of a bank reconciliation statement?
The purpose of a bank reconciliation statement is to compare your records of bank account transactions with the records held by your bank to identify any discrepancies.
What types of discrepancies can a bank reconciliation statement help you identify?
A bank reconciliation statement can help you identify discrepancies such as deposits or withdrawals that have not yet cleared, bank fees or charges that you may not have recorded, or errors in your records.