If the balance on the bank statement does not equal the balance per the company's records, then it can be assumed that
A)the company has no errors in its records concerning the cash account.
B)the bank has made errors in preparing the bank statement.
C)the company has made errors in its records concerning the cash account.
D)there will be items reconciling the difference.

Question

Quizplus · Accepted Answer

If the balances do not match, there must be items that have not been accounted for yet or there are errors either in the company's records or the bank's statement. Therefore, the reconciling items are needed to adjust the balances and make them equal. It cannot be assumed that the company or bank has made errors without further investigation.

If the Balance on the Bank Statement Does Not Equal