Read the table and question below.
| | Omissions | found in the checkbook should have been entered into the checkbook.
Answer (1)
Timing issues, omissions, incorrect sums of outstanding credits/debits, math errors, and previous reconciliation errors can all cause checkbook reconciliation problems.
Analyze each error type to determine if it could lead to reconciliation problems.
Based on the analysis, all five potential errors could cause problems with the reconciliation.
Therefore, the correct option is c. All five of the potential errors could cause this sort of problem. $\boxed{c}
Explanation
Analyze Each Error Type We need to determine which of the listed potential errors could cause Stephen's checkbook reconciliation to have problems. Let's analyze each error type:
I. Timing: If there are timing issues (e.g., a deposit hasn't cleared yet), this would definitely cause a discrepancy between the checkbook and the bank statement. II. Omissions: If some transactions are missing from the checkbook, the checkbook balance will be incorrect. III. Outstanding credits and debits: If the sums of outstanding credits or debits are calculated incorrectly, this will lead to reconciliation problems. IV. Math: If there are math errors in the checkbook (addition or subtraction), the balance will be wrong. V. Previous reconciliation: If the previous reconciliation had errors, those errors would carry over and cause problems in the current reconciliation.
Therefore, all five potential errors could cause problems with the reconciliation.
Determine the Correct Option Based on the analysis, all five potential errors (I, II, III, IV, and V) could cause problems with Stephen's checkbook reconciliation. Therefore, the correct option is:
c. All five of the potential errors could cause this sort of problem.
Examples
Checkbook reconciliation is like balancing a seesaw. If you don't account for every weight (transaction) on both sides (checkbook and bank statement), the seesaw won't balance. Errors in timing, missing transactions, incorrect calculations, or unresolved issues from the past can all throw off the balance. Understanding these potential errors helps ensure that your financial records are accurate and reliable, preventing future financial problems.
