When preparing the monthly bank reconciliation,the accountant for Farris Corporation discovered that a check correctly written to one of Farris' suppliers for $159 had been incorrectly recorded in the books as $195.Which of the following statements is correct with respect to the bank reconciliation process?

Question

Quizplus · Accepted Answer

The cash balance per the books will be increased because the error made the recorded cash outflow greater than it actually was. Correcting the error will add back the difference to the book balance.

When Preparing the Monthly Bank Reconciliation,the Accountant for Farris Corporation