Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.

Name: Differences between the bank statement and the company's Cash account are primarily the result of a time lag in recording transactions.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The bank statement may not reflect the most recent transactions made by the company, resulting in differences between the two. This time lag can be due to factors such as processing time by the bank or delays in checks clearing.

Differences Between the Bank Statement and the Company's Cash Account