Final answer:
Option 4 results in a misstatement of cash at December 31, 2022, because neither the cash disbursement nor the receipt, which occurred in early January 2023, are recorded in 2022. This incorrectly suggests that no cash movement occurred at year-end.
Step-by-step explanation:
To determine which cash transfer results in a misstatement of cash at December 31, 2022, we need to consider the timing of both cash disbursements and cash receipts in relation to the company's year-end date. We need to check if the cash transactions were recorded in the correct accounting period. Option 1: Since the cash disbursement and cash receipt were both recorded in the books on 12/31/22, but the actual movement of cash took place after December 31, 2022, this would not misstate the cash balance at year-end. The company should account for this as outstanding checks or deposits in transit.
Option 2: This is similar to the first option, where timing differences do not affect the December 31 cash balance since both the disbursement and receipt are recognized on the books at the year-end date, but the actual bank payment is in the next period. Option 3: This option shows the disbursement posted to the books in the next year, which means it should not reduce the cash balance at December 31, 2022. However, the cash receipt is correctly recorded on 12/31/22, matching the bank date, and therefore correctly included in the year-end balance. Option 4 stands out because both transactions were recorded in the next year (2023) but look like they are intended to reflect the status on December 31, 2022. Since neither the cash disbursement nor the receipt are recorded in 2022, it wrongly implies that no change in cash balance occurred on or before December 31, 2022. This results in a misstatement of cash at year-end.