The following information applies to the questions below:
Listed below are four interbank cash transfers, indicated by the numbers 1, 2, 3, and 4, of a client for late December 2013 and early January 2014:

-Based on the schedule of interbank transfers above, which of the cash transfers indicates an error in cash cutoff at December 31, 2013?

Question

The following information applies to the questions below:
Listed below are four interbank cash transfers, indicated by the numbers 1, 2, 3, and 4, of a client for late December 2013 and early January 2014:
 
-Based on the schedule of interbank transfers above, which of the cash transfers indicates an error in cash cutoff at December 31, 2013?

Quizplus · Accepted Answer

Transfer 3 indicates an error in cash cutoff because it is recorded in the books of the receiving bank before December 31, 2013, but in the books of the sending bank after December 31, 2013, leading to a mismatch in the recording period.

The Following Information Applies to the Questions Below