Which of the following statements is TRUE if a company's cash balance does NOT equal the balance on its bank statement?
A) The bank has made a mistake.
B) The company's bank usually does not equal the balance on its bank statement.
C) The company's accountant has made a mistake.
D) Both the accountant and the bank have made mistakes.

Question

Quizplus · Accepted Answer

The company's cash balance often does not equal the balance on its bank statement due to timing differences in recording transactions and outstanding items, such as checks not yet cleared or deposits in transit, rather than mistakes by the bank or the accountant.

Which of the Following Statements Is TRUE If a Company's