If the balance on the bank statement does not equal the balance in the cash account, then it can be assumed that:
A) The company has no errors in its records concerning the cash account.
B) The bank has made errors in preparing the statement.
C) The company has made errors in is records concerning the cash account.
D) There will be items reconciling the difference.

Question

Quizplus · Accepted Answer

If the balances do not match, it means there are reconciling items that need to be identified and adjusted accordingly. It does not necessarily mean that the company or the bank has made errors.

If the Balance on the Bank Statement Does Not Equal