Question

What is the purpose of the Pyle Garage for the March bank statement in March of year 2?

1) To provide a summary of the bank transactions for the month of March
2) To calculate the total revenue generated by the Pyle Garage in March
3) To analyze the financial performance of the Pyle Garage in March
4) To compare the bank statement with the Pyle Garage's internal records for March

Answer 1

The purpose of the Pyle Garage March bank statement is to compare it with the internal records for the same month, ensuring accuracy and identifying any discrepancies.

Step-by-step explanation:

The purpose of the Pyle Garage for the March bank statement in March of year 2 is to compare the bank statement with the Pyle Garage's internal records for March. This reconciliation process is crucial for verifying the accuracy of the financial records and ensuring that the transactions recorded in the company's books match those listed by the bank. It helps in identifying any discrepancies, such as missing transactions or errors, and in making any necessary adjustments to the internal records. The bank statement itself is a summary of the bank transactions for the month, but it does not calculate total revenue or analyze the financial performance outright; these assessments are typically done separately within the company's accounting processes.