Question

Which statement is true about the reconciliation discrepancy report?

A. It identifies errors in financial statements
B. It reconciles budget allocations
C. It reviews employee performance
D. It tracks inventory turnover

Answer 1

The reconciliation discrepancy report identifies errors in financial statements.

Step-by-step explanation:

The correct answer is A. It identifies errors in financial statements.

A reconciliation discrepancy report is a tool used by businesses to identify and resolve differences between two sets of financial records or reports. It helps to ensure that the financial statements are accurate and that any errors or discrepancies are identified and corrected.

For example, if a company's financial statements show one amount for accounts receivable while the bank statement shows a different amount, the reconciliation discrepancy report can be used to identify the cause of the discrepancy and take appropriate action to resolve it.