If a company deposits all its receipts in the bank and pays all its bills by cheque, then the monthly bank statement balance will always agree with the company's record of its chequing account balance.

Question

Quizplus · Accepted Answer

Differences can arise due to timing differences in recording transactions (e.g., outstanding checks or deposits in transit) and errors, either by the bank or the company, leading to discrepancies between the bank statement balance and the company's records.

If a Company Deposits All Its Receipts in the Bank