If the balance on the bank statement does not equal the balance in the company's Cash account,then you can conclude that:

Question

Quizplus · Accepted Answer

If the balances do not match, it is likely that there are reconciling items that have not yet been identified, such as outstanding checks, deposits in transit, or bank fees. It is important to identify and account for these items before making any adjustments to the Cash account. While it is possible that errors were made by either the company accountant or the bank, it is difficult to determine the cause of the discrepancy without first reconciling the statement.

If the Balance on the Bank Statement Does Not Equal