Banks provide important controls surrounding a company's cash. These include which of the following?

• A. Providing bank statements for reconciliation
• B. Approving company budgets
• C. Authorizing employee expense reimbursements
• D. Requiring dual signatures on all company checks

Answer: (A)

Verified step by step guidance

1. Understand the role of banks in controlling a company's cash. Banks are external entities that provide services to help companies manage and safeguard their cash effectively.
2. Review the options provided in the problem. The options include: (1) Providing bank statements for reconciliation, (2) Approving company budgets, (3) Authorizing employee expense reimbursements, and (4) Requiring dual signatures on all company checks.
3. Analyze each option to determine whether it aligns with the typical functions of a bank. For example, banks commonly provide bank statements for reconciliation, which is a key control mechanism for verifying cash transactions.
4. Consider the other options. Approving company budgets and authorizing employee expense reimbursements are internal company functions, not typically performed by banks. Requiring dual signatures on checks is a company policy that banks may enforce but do not directly require.
5. Conclude that the correct answer is the option that reflects a service banks provide to help companies control their cash, such as providing bank statements for reconciliation.