Which of the following is a primary responsibility of an individual who holds a checking account?

• A. Reconciling the account regularly to ensure all transactions are accurate
• B. Setting national accounting standards
• C. Auditing the financial records of other account holders
• D. Preparing the company's annual financial statements

Answer: (A)

Verified step by step guidance

1. Understand the context of the question: It is asking about the primary responsibility of an individual who holds a checking account, which is a personal financial tool used for managing day-to-day transactions.
2. Eliminate irrelevant options: 'Setting national accounting standards' and 'Auditing the financial records of other account holders' are tasks performed by professionals in specific roles, not by individuals managing their own checking accounts.
3. Consider the purpose of a checking account: It is used to deposit money, make payments, and track transactions. Ensuring the accuracy of these transactions is a key responsibility of the account holder.
4. Focus on the correct option: 'Reconciling the account regularly to ensure all transactions are accurate' aligns with the responsibility of an account holder to verify that their records match the bank's records, ensuring no errors or unauthorized transactions.
5. Conclude that preparing a company's annual financial statements is unrelated to personal checking accounts, as it pertains to corporate accounting rather than individual account management.