Differences Between the Amount of Cash Reported on a Company's

question 119

Multiple Choice

Differences between the amount of cash reported on a company's bank statement and the balance in the company's Cash account before the bank reconciliation are primarily due to:

• A)errors in the accounting process by the company.
• B)errors made by the bank.
• C)differences between the cash basis and accrual basis of accounting.
• D)the timing difference in recording transactions.

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Definitions:

State and Local Taxes

Taxes imposed by state and local government entities that can include income, sales, and property taxes.

Form 1040EZ

Form 1040EZ was a simplified tax form for individuals without dependents and with an income under a certain threshold; it is no longer in use as of 2018, replaced by the Form 1040.

Tax Base

The total amount of assets or income that can be taxed by a government, serving as a critical element for determining tax rates and revenue.

Progressive Tax Rate

A tax system in which the rate of taxation increases as the taxable amount increases, applying higher rates to higher income brackets.