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What is the purpose of a bank reconciliation statement?

  1. A Explaining differences between the cash book and the bank statement balances
  2. B Calculating interest earned
  3. C Valuing investments
  4. D Computing tax liability
Answer

Explaining differences between the cash book and the bank statement balances

It identifies timing differences such as unpresented cheques and deposits in transit, plus errors and unrecorded bank charges.

All CA MCQs

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