Accounting · Bank Reconciliation Statement

Evaluate the following statements regarding the practices and principles of Bank Reconciliation Statements (BRS): Statement 1: The BRS is an essential document prepared by the bank and sent to the customer at the end of every month. Statement 2: When preparing a reconciliation starting from the cash book balance, cheques issued by the firm but not yet presented for payment are added back. Statement 3: Direct debits made by the bank for services like insurance premiums are subtracted from the cash book balance during reconciliation. Statement 4: An error in the bank statement, such as a wrong credit given by the bank clerk, should be corrected by the firm's accountant inside the cash book before the reconciliation is completed. Which of the following evaluations is accurate?