Question

Why does the Bank Statement have an opposite balance to what the business's bank account has?

A) Bank errors in the statement.
B) Interest and fees applied by the bank.
C) A difference in accounting methods.
D) Incorrect account number.

Answer 1

A bank's balance sheet lists its assets and liabilities. The opposite balance between the bank statement and the business's bank account can be caused by bank errors, interest and fees, accounting methods, or incorrect account number. All the options are correct.

Step-by-step explanation:

A bank's balance sheet lists its assets and liabilities. The assets of a bank include its loans, ownership of bonds, and reserves. The liabilities of a bank are its deposits. The balance sheet calculates the net worth of a bank by subtracting its liabilities from its assets.

The opposite balance between the bank statement and the business's bank account can be caused by bank errors in the statement, interest and fees applied by the bank, a difference in accounting methods, or an incorrect account number.