Which one of the statements appearing below is incorrect regarding bank reconciliations?
A. After preparing a bank reconciliation, no journal entries need to be made for outstanding checks or deposits in transit.
B. The up-to-date ending cash balance on the bank statement side will generally not equal the up-to-date ending cash balance on the book side.
C. A bank reconciliation is an internal report prepared to report the cash balance to investors and creditors.
D. If a company's records show a different cash balance from that shown on the company's bank statement, either the company or the bank has made an error.
Answer: D
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