Which the Following Is the Primary Cause for Discrepancy Between

question 21

Multiple Choice

Which the following is the primary cause for discrepancy between the bank statement and the company's general ledger cash account?

• A) Time lags that prevent one of the parties from recording a transaction in the same period as the other.
• B) Fraudulent activity occurring with the cash account.
• C) Unusual items would be the only cause since discrepancies rarely occur between the bank statement and the general ledger cash account.
• D) The only reason for discrepancies would be errors made by either the company or the bank.

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Definitions:

Financial Calculator

A specialized calculator designed to perform financial functions including interest rates, payments, investment value calculations, and other financial metrics.

Present Value

The current equivalent value of a future stream of payments or a single financial sum, using a specific return rate.

Annuity

An economic tool that delivers a stable flow of income to an individual, commonly employed in retirement planning strategies.

Discount Rate

The interest rate used to discount future cash flows to their present values, often reflecting the cost of capital or risk.