Question

Brad Banks is confused about the lack of agreement between the cash balance per books and the balance per bank. Please explain to Brad the causes for the lack of agreement and provide an example of each cause.

Answer 1

Most of the other issues is the lack of memorandum of understanding seen between financial statement according to the novels as well as the balance and according to the financial institution are almost as following.

Step-by-step explanation:

• Checks issued but not submitted for compensation:

In those kinds of case scenarios, the checks are authorized to either the creditors besides compensation, but they've never been submitted to either the finance company. Besides obvious reasons, Brad banks would have authorized a $5,000 check with Tom.

• Direct debits are not documented throughout publications by the bank:

In such case scenarios, the bank has automatic payments throughout the consideration, and therefore this would not be recognized at the time including its account holders.