Question

How many ways are there to prepare Bank Reconciliation Statement?

• A. Three
• B. Two
• C. One
• D. Five

Answer 1

Answer: (B)

Two

There are three(3) ways to prepare the bank reconciliation namely:

1. Take the book balance and reconcile it to the bank balance
2. Take the bank balance and reconcile it to the book balance
3. Take the book balance and reconcile it to an adjusted cash balance, then take the bank balance and reconcile it to the adjusted cash balance