Question

1. A Bank Reconciliation statement isprepared by bank. (True/False)
2. Compensating errors will cause a difference in Trial Balance.(True/False)​

Answer 1

Answer:

Bank reconciliation statement is prepared by the business firm/ company accountant/ book keeper/ customer and not by the bank as it is the responsibility of the business to present a true and fair picture of its books of accounts to its various stakeholders.

Not all types of errors affects the agreement of trial balance. Errors of complete omission, compensating errors do not affect the agreement of trial balance.

Answer 2

1.a bank reconciliation statement is prepared by bank : FALSE
2.compensating error will cause a difference in trial balance : FALSE