Question
Asked Dec 21, 2019
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In 100 words or fewer, explain why there may be a difference between the bank statement ending cash balance and the ending balance in the Cash account. Give at least two examples each of adjustments to the bank balance and to the book balance.

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Expert Answer

Step 1

Reason:

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Timing differences: When accounting records are maintained by both bank and business, time interval occurs and thus cash differences occur between cash amount in the bank statement and the cash account in the company books. These time intervals are referred as timing differences.

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Step 2

Examples for adjustment to...

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