Final answer:
Reconciliation of cost and financial accounts ensures accuracy in the accounting records. It involves comparing cost accounts with financial accounts to identify discrepancies. This process is essential for maintaining reliable financial information.
Step-by-step explanation:
Reconciliation of cost and financial accounts ensures c. Accuracy of the accounting records by comparing the two sets of accounts to ensure that they are consistent with each other. This process is critical for businesses as it helps to identify and correct any discrepancies between the cost accounts (which are used for internal management purposes) and financial accounts (which are prepared for external reporting purposes).
Reconciliation is important not for liquidity or profitability directly, but for ensuring the reliability of financial information, which can indirectly affect decision-making that impacts liquidity and profitability.