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)The company purchased supplies using a debit card.
B)The company has cash receipts that have been deposited in the bank.
C)The company deposited a customer check that was found by the bank to have insufficient funds.

Question

Quizplus · Accepted Answer

Choice C represents a bank error in the accounting records, which would cause a discrepancy between the bank statement and the accounting records. Choices A and B represent normal transactions that would not cause a discrepancy if recorded properly in both the bank statement and accounting records.

Which of the Following Items Would Cause the Balance of Cash