Question

What is the process of comparing the bank's balance with the company's cash balance, and explaining the differences to make them agree?a. Voucher system b. Bank certification c. Bank agreement d. Bank reconciliation

Answer 1

Bank reconciliation

Step-by-step explanation:

Bank reconciliation is a process which is used to compare a company's cash balance with the bank balance. It is a procedure which helps to find any discrepancies in the accounts. It is also used to analyses the differences and to find any lost transactions. Company’s cash balance and bank balance are two separate accounts design to reconcile at a certain time.