Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 7 - Fraud, Internal Control, and Cash - Questions: 23

Answer

The lack of agreement between the balance in Bank account as per company books and the balance as per bank statement, has two causes: 1. Time lag 2. Errors

Work Step by Step

1. That prevent one of the parties to record the transaction in the same period. The example, it may take several days between the time a company pays by check and the date the bank pays that check. 2. By either party in recording transaction. For example, the bank has passed a check of 630 dollars and entered as 360 dollars.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.