Which of the following situations would normally be discovered as part of the test of the bank reconciliation?
A) Failure to bill a customer.
B) Failure to include a deposit in transit on the bank reconciliation.
C) Duplicate payment of a vendor's invoice.
D) Payment to an employee for more hours than she worked.

Question

Quizplus · Accepted Answer

The failure to include a deposit in transit on the bank reconciliation would be discovered as part of the test of the bank reconciliation. A deposit in transit is a deposit that has been made and recorded in the company's records but has not yet been recorded by the bank. This would cause a difference between the company's balance and the bank's balance, which would be discovered during the bank reconciliation process. Failure to include this deposit would result in an incorrect bank balance on the reconciliation.

The other options, failure to bill a customer, duplicate payment of a vendor's invoice, and payment to an employee for more hours than worked, would not be discovered as part of the bank reconciliation process. These errors would be discovered through other accounting procedures such as reviewing customer accounts, vendor accounts, and payroll records.

Which of the Following Situations Would Normally Be Discovered as Part