1.What is accruals? 2.what is bank reconcilation?

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Accepted Answer

Accruals are expenses incurred but not yet paid, while bank reconciliation is the process of comparing the bank statement with the company's records.

Accruals are expenses that have been incurred but not yet paid for.
Accruals are recorded in the financial statements to match revenues and expenses in the same accounting period.
Bank reconciliation is the process of comparing the company's records with the bank statement to ensure they match.
Bank reconciliation helps identify any discrepancies or errors in the company's financial records.
Examples of accruals include salaries payable, interest payable, and utilities payable.
Examples of bank reconciliation items include outstanding checks, deposits in transit, and bank fees.

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