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LEARNING OBJECTIVES Explanation Three steps to follow in preparing a check are as follows: 1 The most common reasons for differences between the book and bank cash balances are as follows: LO1 Describe how to open and use a checking account. LO2 Prepare a bank reconciliatio n and related journal entries. LO3 Establish and use a petty cash fund. LO4 Establish a change fund and use the cash short and over account. Two important aspects of the functioning of a petty cash fund are as follows