The fact that a company has deposited funds at the bank late at night on December 31, which were not processed by its bank until January 2, means that the bank's records will show a lower December 31 account balance than the company's books will show.

Question

Quizplus · Accepted Answer

Since the funds were not processed by the bank until January 2, they will not be reflected in the bank's records for December 31. Therefore, the bank's records will show a lower account balance than the company's books will show.

The Fact That a Company Has Deposited Funds at the Bank