If the balance shown on a company's bank statement is less than the correct cash balance,and neither the company nor the bank has made any errors,there must be

Question

Quizplus · Accepted Answer

If the balance shown on a company's bank statement is less than the correct cash balance, but neither the company nor the bank has made any errors, it means that there are some deposits made by the company that have not yet been recorded by the bank. These deposits are known as deposits in transit. Once the bank records these deposits, the correct balance will be reflected on the statement. Therefore, the correct option is D.

If the Balance Shown on a Company's Bank Statement Is