Question

Bank reconciliation statement compares a bank statement with _________

Answer 1

Bank reconciliation statement compares a bank statement with bank balance.

• A bank reconciliation can be described as a report which compares a bank statement with the bank balance according to the company's accounting records.
• Usually, due to time differences the bank statement and the bank account balance might differ but a bank reconciliation makes it easier to understand the difference.
• The transactions of a bank account are mentioned in a bank reconciliation statement.