Determine the statements below that are true regarding why a bank reconciliation is used. (Check all that apply.) a) The Cash account balance in the general ledger is accurate, but the bank statement balance is not. b)Timing differences between the bank statement and the depositor's records are reflected in the bank reconciliation. c) The bank reconciliation is useful in proving the accuracy of the Cash account in the general ledger. d) We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two.

The correct options are B and D.

Explanation: A bank reconciliation statement is prepared for the sole purpose of reconciling the balances reflected in the cash account (cash book) of a business entity and the cash account maintained by the bank on behalf of the business organisation at regular intervals (usually every month).

The normal procedure is to compare entries in your cash account with those in the bank statement provided by your bank. Ideally, all entries are supposed to be in agreement. In other words, all your debit transactions in your cash account should have been in the credit of your bank statement, and all credit transactions should have been on the debit side of your bank statement.

However, the ideal situation is not always achievable in real practice. Timing of certain transactions like check payments can account for a difference in month end balances. To illustrate, a check paid in to your bank would have been recorded as a debit in your cash account but the bank does not usually credit your account with the check amount on the same date. If this transaction occurs on the last day of the month, it would not be reflected until the following month and your current bank statement would show a difference.

Also, some charges are recorded into the debit of your bank statement and this would not be reflected in your cash account until your bank statement is made available. Such differences would also be taken care of by a bank reconciliation statement and in way does this mean your cash account is inaccurate.

So basically, a bank reconciliation statement does not try to prove accuracy or otherwise of your cash account, but it is meant to identify and explain any difference or differences (in terms of entries) between your cash account and the bank records.