If before reconciliation the balance on the bank statement does not equal the balance in the company's cash account:
A)the bookkeeper made a mistake.
B)the bank made a mistake.
C)both the bank and the bookkeeper made a mistake.
D)It is perfectly normal for the two balances to be different.

Question

Quizplus · Accepted Answer

It is common for the balance on the bank statement to differ from the company's cash account balance before reconciliation due to outstanding checks, deposits in transit, bank fees, and other timing differences. Reconciliation is the process used to explain these differences.

If Before Reconciliation the Balance on the Bank Statement Does