What two balances can be viewed for bank accounts in Xero?

The correct answer highlights the different ways bank balances are represented in Xero, specifically the Statement Balance and the Balance in Xero.

The Statement Balance refers to the balance reported by the bank on the latest bank statement, reflecting the actual amount available in the bank account as of that statement date. This is crucial for reconciling transactions and ensuring that the records in Xero match what is reported by the bank.

The Balance in Xero, on the other hand, is the amount that Xero shows in the accounting records. This balance is updated as transactions are recorded within Xero, such as expenses, income, and other adjustments. If there are discrepancies between the two balances, it prompts users to investigate further, ensuring that all transactions have been properly recorded and reconciled.

Other options may introduce terms that don’t accurately describe the features available in Xero. For example, total available funds and outstanding checks may pertain to overall financial standing but do not specifically refer to supported balance types within the application. By focusing on Statement Balance and Balance in Xero, users can effectively manage and reconcile their bank accounts within the platform.