What does reconciling an account involve?

a. checking one's financial records against the bank’s
b. making sure a paycheck arrives on time
c. calculating the interest owed on a savings account
d. identifying instances of identity theft

Reconciling an account involves checking one’s financial records against the banks. This implies the correct answer is A.

Account reconciliation involves checking your financial records against a financial statement from other sources which could be bank or credit Bank Company. Comparing both financial records is to ensure there is no discrepancy or fraud. In other words, comparing the two versions will give you the chance to spot any fraud or errors made by the bank.

The importance of comparing transactions and balances cannot be overemphasized because it helps firms or accountants to discover fraud, prevents overdraft on cash accounts and provides details such as timing differences and income that are not properly recorded.

Account reconciliation can help firms or accountants to avoid paying overdraft fee and made their transactions to be accurate. Comparing transactions and balances can also help firms to discover improper spending before it degenerates into a big problem for the company.

Account reconciliation can as well help accountants to provide a financial statement that is reliable, error-free and of high quality.

Companies may decide to compare transactions and balances monthly, daily or annually, however, there is no recommended way to carry out account reconciliation.

Therefore, reconciling an account involves checking one’s financial records against the banks

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KEYWORDS:

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education