Question: 1. What is a bank reconciliation? How can it help in determining whether proper control of cash has been maintained?
2. What are two primary reasons that the company's balance of cash will differ between its own records and those of the bank?
3. Give some examples of timing differences in cash transactions that firms need to account for in a bank reconciliation.
4. After preparing a bank reconciliation, what adjustments does the company need to make to its records?