Question 12 of 50beginner🧠 RememberMCQ1 mark
A bank reconciliation statement is prepared by:
Exercise: Test Your Understanding - II | Q: 1 | (Page 14)
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Explanation
Option (C) is correct because the provided text states that a Bank Reconciliation Statement is prepared to reconcile the difference between the bank balance as shown in the firm’s cash book and the bank statement. The process involves comparing entries in both books to ascertain causes of difference, such as cheques deposited but not collected. Since the cash book is maintained by the firm (the customer), the reconciliation is performed by the account holder.