TB 07-37 It is not necessary for businesses to reconc... It is not necessary for businesses...
TB 07-37 It is not necessary for businesses to reconc...
It is not necessary for businesses to reconcile their chequing accounts since banks keep accurate records and provide internal control support for cash.
True or False
TrueFalse
Homework Answers
Answer
--FALSE. The businesses are to reconcile their checking account balance with the balance appearing in the books of account.
--The are bound to be certain differences between the two balances, for example, charges deducted by bank would have decrease the checking account balance, BUT the same would not have been accounted in the books of account, leading to a difference between the two balances.
--Hence, the reconciliation statement is required.
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