Which cash reconciling item could potentially affect either the bank statement or the general ledger?
A) Recording error
B) Interest earned on notes held by the bank
C) Outstanding deposit
D) NSF checks

Question

Quizplus · Accepted Answer

Recording errors can affect either the bank statement or the general ledger depending on where the error was made. If the error is in the company's books, it affects the general ledger. If the bank made the error, it affects the bank statement.

Which Cash Reconciling Item Could Potentially Affect Either the Bank