What transaction could lead to differences between the bank statement and cash records?

The transaction that can lead to differences between the bank statement and cash records is checks written but not yet cashed. When a company writes a check, it records that cash outflow in its accounting system immediately. However, the actual cash does not leave the bank account until the check is presented and cleared by the bank. This creates a timing difference between when the transaction is recorded in the company’s books and when it is reflected in the bank statement.

For example, if a company writes checks to pay for expenses at the end of the month, those checks may not be cashed until the following month. Consequently, the company's cash balance in its financial records may show a lower amount than what is reported on the bank statement, which will reflect the bank’s transactions up to that date, including checks that have not yet cleared.

Other choices do not create such discrepancies. A direct deposit of payroll would typically be reflected in both the bank statement and the company's records simultaneously. Cash sales recorded in the sales ledger would affect the income statement but are reflected in the company's cash records as immediate cash flows, leading to alignment between the records and the bank. Purchases made with a company credit card would also not impact the cash account until the company pays the credit card