What is the effect of an overstatement of a payment in the cash book on the bank reconciliation statement?

Question 22Answer

a.

It decreases the corrected bank balance.

a. It decreases the corrected bank balance.

b.

It increases the corrected bank balance.

b. It increases the corrected bank balance.

c.

It decreases the cash book balance.

c. It decreases the cash book balance.

d.

It has no effect on the reconciliation process.