Question

What is reconciliation in terms of a bank statement?

The process of reaching agreement between two opposing parties.
Comparing a bank statement in your own records to ensure that balances are correct, and there have not been any errors or fraud.
A process that is internal to the bank that cannot be done without access to internal bank records.
There is no such thing.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The correct answer is: Comparing a bank statement to your own records to ensure that balances are correct, and there have not been any errors or fraud.

Answer 2

[AI-generated answer — Step-by-Step Bot]

Reconciliation in terms of a bank statement refers to the process of comparing and ensuring that the transactions and balances recorded in your own records match those shown on your bank statement. This helps to identify any errors or discrepancies, such as unauthorized transactions, missing deposits, or recording mistakes. It is an essential step to verify the accuracy of your financial records and detect any fraudulent activity. Reconciliation is typically performed by individuals or businesses who maintain their own records of financial transactions and is not an internal process exclusive to the bank.