Which of the following would not cause the bank balance to differ from the cash balance in the accounting records?
A)The company wrote checks that have cleared the bank.
B)Deposits outstanding that have been recorded on the company's records,but not on the bank's.
C)The company made an error in recording a deposit.
D)The bank made an error in recording a deposit made by the company.

Question

Quizplus · Accepted Answer

The company's records can differ from the bank's records for two basic reasons: (1)the company has recorded some items that the bank doesn't know about at the time it prepares the statement of account or (2)the bank has recorded some items that the company doesn't know about until the bank statement is examined.Both the company and the bank will know about company checks that have cleared the bank.

Which of the Following Would Not Cause the Bank Balance