Questions: Which of the following is a benefit of online banking? A company's book balance will always equal the bank's balance. The business can reconcile to the bank's balance at any time. The business can reduce their internal controls over cash receipts. The bank reconciliation is not necessary.

The answer is the second one: The business can reconcile to the bank's balance at any time.

Explanation for each option:

1. A company's book balance will always equal the bank's balance.

   • This is incorrect. A company's book balance and the bank's balance often differ due to timing differences, outstanding checks, deposits in transit, and bank fees or errors. Online banking does not change this fundamental accounting principle.

2. The business can reconcile to the bank's balance at any time.

   • This is correct. One of the key benefits of online banking is that businesses can access their bank account information in real-time, allowing them to perform reconciliations more frequently and at any time, rather than waiting for monthly bank statements.

3. The business can reduce their internal controls over cash receipts.

   • This is incorrect. Online banking does not reduce the need for strong internal controls over cash receipts. In fact, maintaining robust internal controls is crucial to prevent fraud and ensure accurate financial reporting.

4. The bank reconciliation is not necessary.

   • This is incorrect. Bank reconciliation remains a necessary process to ensure that the company's financial records match the bank's records, identify discrepancies, and correct any errors.

Summary: The primary benefit of online banking in this context is that it allows businesses to reconcile to the bank's balance at any time, providing more timely and accurate financial management.