Question

which account provides the basis of reconciliation of profits of cost and financial accounts ​

Answer 1

Answer:

Memorandum Reconciliation Account

Step-by-step explanation:

Memorandum Reconciliation Account performs the same function of reconciling two figures of profits disclosed by financial accounts and cost accounts as is accomplished by preparing reconciliation statement.

Answer 2

Answer:

Investment firms want detailed cost basis data at a tax lot level so they can make better, more tax-efficient decisions. Sometimes, the lack of ability to do these things easily with in-house resources can hamper your firm’s performance. These reasons could include:

Lack of ability to manipulate large, complex data sets to achieve proper formatting

Lack of familiarity with differing data nuances between custody sources

Closing methods between your firm and your custodian not being in sync

Overwhelming amount of data to be reconciled

Custodian source is missing the cost basis

Custodian data is not available through an automated, digital feed

Lack of functionality within the portfolio accounting system