When performing bank reconciliation in QuickBooks, how should you handle multiple bank accounts?

• A. You can reconcile all accounts in a single reconciliation.
• B. Reconciliation is optional for bank accounts.
• C. Only cash accounts require reconciliation.
• D. You must reconcile each bank account separately; you may also reconcile credit card accounts.

Answer: (D)

Bank reconciliations are done for one account at a time because each bank statement corresponds to a specific account in QuickBooks, with its own ending balance and set of transactions. When you have more than one bank account, you should run a separate reconciliation for each account to ensure QuickBooks matches every statement exactly. You may also reconcile credit card accounts, since they are separate liability accounts with their own statements and require reconciliation as well.

Reconciliating all accounts in a single pass isn’t how the process works, because the balances and transactions belong to different statements. Reconciliation isn’t optional if you want accurate records, and credit card accounts, not just cash accounts, require reconciliation to verify the proper balances against statements. In practice, you’d open Reconcile, select one bank or credit card account, complete that reconciliation, then repeat for each additional account.