The main reason that the bank statement cash balance and the company's cash balance do initially balance is due to timing differences.

Question

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The bank statement and company's cash balance can differ due to timing differences such as checks that have been written but not yet cleared, or deposits that have been made but not yet processed by the bank. However, initially they should balance since both balances represent the same amount of cash held at a specific point in time.

The Main Reason That the Bank Statement Cash Balance and the Company's