SAP Business One Certification Practice Exam

What is the result of all types of bank reconciliation?

1. The bank statement row is reconciled with the bank record in the accounting ledger

2. The bank statement is ignored during reconciliation

3. The accounting ledger is adjusted without considering the bank statement

4. The transactions are left unverified

The correct answer is: The bank statement row is reconciled with the bank record in the accounting ledger

The result of all types of bank reconciliation is that the bank statement row is reconciled with the bank record in the accounting ledger. This process ensures that the records maintained by the business (the accounting ledger) align with the information provided by the bank on the statement. Reconciliation involves comparing transactions listed in the bank statement with those in the accounting records to identify any discrepancies such as outstanding checks, deposits in transit, or errors. This is a crucial step in financial management, as it confirms the accuracy of both sets of records and helps in identifying any potential errors or fraudulent activity. Proper reconciliation helps ensure that the business has an accurate view of its cash position, which is vital for effective financial planning and decision-making. Achieving reconciliation indicates that the financial data has been validated and discrepancies have either been resolved or are being addressed.