CIMA BA3 · Chapter 6 · Question 7 of 10
Which bank balance is reported in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The cash book balance after correcting it for items such as bank charges and errors in the cash book
Explanation
The statement of financial position shows the corrected cash book balance, because it records all the business's transactions up to the reporting date. The bank statement balance is distorted by timing differences such as unpresented cheques and outstanding lodgements.
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