When reconciling a bank account, which one of the following is considered a timing difference (difference between the bank balance and the book balance)?
A)Checks that have cleared the bank
B)Deposits recorded by the bank
C)Outstanding checks
D)Errors

Question

Quizplus · Accepted Answer

Outstanding checks are considered a timing difference because they have been recorded in the company's books but have not yet cleared the bank. This means that the bank balance will be higher than the book balance until the outstanding checks are deducted from the bank balance. Checks that have cleared the bank and deposits recorded by the bank are not considered timing differences because they will be reflected in both the bank balance and the book balance. Errors are not necessarily timing differences and can affect both the bank balance and the book balance in different ways.

When Reconciling a Bank Account, Which One of the Following