Which of the following items would cause the balance of cash in the bank statement not to equal the balance of cash in the accounting records?
A)Interest earned on the bank balance that the company has not recorded.
B)Checks written by the company that have not cleared the bank.
C)Cash receipts by the company that have not been deposited in the bank.
D)All of the other answers would cause cash balances to differ.

Question

Quizplus · Accepted Answer

All of the options given would cause a difference in the balance of cash in the bank statement and accounting records. Option A would increase the bank balance but may not have been recorded by the company yet. Option B would decrease the bank balance as the checks have not been processed yet, but they have been recorded in the accounting records. Option C would increase the cash balance in the accounting records but may not have been recorded by the bank yet.

Which of the Following Items Would Cause the Balance of Cash