A bank reconciliation should be prepared periodically primarily because b) the company’s records and the bank’s records are in agreement. This process helps ensure that the financial records of a company match the records of its bank account. Discrepancies can arise due to various reasons such as outstanding checks, deposits in transit, or bank fees that the company has not accounted for.
By regularly reconciling these records, a company can identify these differences and address them promptly. This not only helps maintain accurate financial statements but also provides insights into cash flow and spending patterns.
While options a), c), and d) address certain aspects of record-keeping, the essential purpose of a bank reconciliation is to ensure that both the company’s and the bank’s records align, which directly relates to option b).