A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the?

  • A commission paid
  • B interest received
  • C direct payment
  • D direct withdrawal

The correct answer is B. interest received

Electronic charges or payment on the bank statement not yet recorded in the cashbooks can cause discrepancies on the cash book. If interest has being paid on the account and not recorded of the cashbook, the bank statement is likely going to be overstated with the amount paid and not recorded

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