What causes the balance on the bank statement to differ from the cash balance in the accounting records?

Question

Quizplus · Accepted Answer

The balance on the bank statement can differ from the cash balance in the accounting records due to time lags in processing transactions, errors by the bank (such as incorrect posting of transactions or failure to process a deposit or withdrawal), and errors by the company (such as failure to record a transaction in the accounting records or recording it incorrectly). Therefore, all of the answer choices (A, B, and C) are correct.

What Causes the Balance on the Bank Statement to Differ