True or false: reconciliation

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   A reconciliation brings out errors made in the cash book or the pass book.

2. Statement is true

   Yes

   Statement

   Delay in clearing cheques shows up in the reconciliation.

3. Statement is true

   Yes

   Statement

   A regular reconciliation discourages embezzlement.

4. Statement is true

   No

   Statement

   The cash book and pass book must always agree without any working.

Instructions

Decide whether each statement about reconciliation is true or false.

Explanation