Question

13. In Reconciliation Statement, Expenses shown only in Financial Accounts are
(a) added to costing profit
(b) deducted from financial profit
(c) added to financial loss
(d) deducted from costing profit​

Answer 1

Explanation:

Reconciliation Statement or a Memorandum Reconciliation Account is prepared showing the reasons for difference between the results disclosed by cost and financial books. ... Reasons for Difference in Profits/losses Shown by Cost Accounts and Financial Accounts • Items shown only in Financial account

Answer 2

Answer:

In the statement of reconciliation, the expenses shown only in financial accounts are added to the financial profits.  

Explanation:

• Payments have been processed, and cash collections have been put into the bank, according to bank reconciliation data.
• The reconciliation statement aids in the identification of discrepancies between the bank and book balances, as well as the processing of necessary adjustments or repairs.
• Once a month, an accountant processes reconciliation statements.

• Bank reconciliation statements are powerful fraud-detection tools. For example, if a check is forged, resulting in a payment that is bigger than expected, steps can be taken to stop the illegal action.
• Bank reconciliation statements can aid in the detection of inaccuracies that could have a negative impact on financial reporting.
• Financial statements are used to calculate profitability since they represent a company's health for a certain period or point in time.
• Financial statements that are accurate enable investors to make informed decisions and provide companies with a clear view of their cash flows.

Hence, in reconciliation statement, expenses shown only in financial accounts are added to the financial profits.

#SPJ2