Explain the Reconciliation principle.

Question

Accepted Answer

Reconciliation is the process of ensuring two sets of records are in agreement, often used in accounting and finance.

It involves comparing financial records from different sources, such as bank statements and company ledgers.
For example, a company may reconcile its cash account with its bank statement to identify discrepancies.
Reconciliation helps in detecting errors, fraud, or unauthorized transactions.
It is typically performed monthly, quarterly, or annually, depending on the organization's policies.
There are different types of reconciliation, including bank reconciliation, account reconciliation, and vendor reconciliation.

Accepted Answer

Reconciliation is a process of checking financial information and ensure that informations are accurate and correct.

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