Question

Which of the following kind of financial statement will be most like the statement used to reconcile the client ledger?

Select one:
a. Income report
b. Payroll record
c. Balance sheet
d. Cash flow statement

Answer 1

The balance sheet is most like the statement used for client ledger reconciliation as it provides a snapshot of a company's financial position, displaying assets and liabilities that are checked against the client ledger balances.

Step-by-step explanation:

The financial statement that is most like the statement used to reconcile the client ledger is the balance sheet. A balance sheet provides a snapshot of a company's financial position at a specific point in time, listing the company's assets, liabilities, and shareholders' equity. Client ledger reconciliation typically involves ensuring that the balances listed in the client ledger accurately reflect the real-world situation of assets (like cash and receivables) and liabilities (like payables).

When reconciling a client ledger, one would check the ending balances of individual accounts against related figures on the balance sheet. For instance, the total of all client cash balances should match the cash account figure on the balance sheet. Similarly, the total of clients' accounts receivable should align with the accounts receivable total on the balance sheet. Therefore, the balance sheet is the statement used as a reference point in the reconciliation process.