Question

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

Answer 1

Answer:

Outstanding checks

Explanation:

One of the reasons why a cash book and a bank statement might not show identical entries arise from outstanding checks.

Outstanding checks are payments that have not yet been cleared and debited to the account at the bank.