Causes of Discrepancies Between Cash Book And Bank Statement - SS2 Accounting Past Questions and Answers - page 1
What is one cause of discrepancies between a cash book and a bank statement?
Timing differences
Correct recording of transactions
Matching transactions with invoices
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What can cause a difference between the cash book balance and the bank statement balance?
Recording transactions correctly
Deposits and withdrawals being processed on the same day
Outstanding checks or deposits
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What is an example of a timing difference that could cause a discrepancy?
Bank errors in recording transactions
Fees and interest charges
Deposits recorded in the cash book but not yet cleared by the bank
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What is the cause of a discrepancy between the cash book and bank statement that may indicate fraud or theft?
Timing differences
Errors in recording
Unauthorized transactions
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What is the significance of reconciling the cash book with the bank statement?
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What steps can be taken to identify the cause of a discrepancy between the cash book and bank statement?
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