Question

The starting point for the verification of the balance in the general bank account is to obtain a bank cutoff statement. True or False

Answer 1

The starting point for the verification of the balance in the general bank account is to reconcile the bank statement with the company's records.

Step-by-step explanation:

The statement, 'The starting point for the verification of the balance in the general bank account is to obtain a bank cutoff statement,' is False. The starting point for the verification of the balance in the general bank account is to reconcile the bank statement with the company's records. The bank cutoff statement, on the other hand, is a document that shows all the transactions that occurred between the bank and the company after the date of the regular bank statement.

For example, if the bank statement ends on September 30 and the company's records show a deposit on October 1, this deposit will be included in the bank cutoff statement. By reconciling the bank cutoff statement, the company ensures that all transactions are correctly recorded and that the balance matches between the bank and the company's records.