An example of a bank error that causes the company's balance and bank's balance of cash to differ is the purchase of supplies with a check.This is an example of a timing difference.

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The purchase of supplies with a check is a transaction initiated by the company and is not an error by the bank. It represents a timing difference because the bank may not have processed the check at the time the company records the transaction.

An Example of a Bank Error That Causes the Company's