Response to the following questions:
1. What is a bank statement?
2. What is the meaning of the phrase to reconcile a bank balance?
3. Why do we reconcile the bank statement balance of cash and the depositor's book balance of cash?
4. List at least two items affecting the bank balance side of a bank reconciliation and indicate whether the items are added or subtracted.
5. List at least three items affecting the book balance side of a bank reconciliation and indicate whether the items are added or subtracted.