The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
Correct Answer
D) $1,300
Unexplained difference is the absolute bank-book difference less identified timing items.
Why This Is the Correct Answer
Unexplained difference is the absolute bank-book difference less identified timing items.
Why the Other Options Are Wrong
Option A: $2,900
$2,900 is above the supported result for bank exception amount; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $1,600
$1,600 is above the supported result for bank exception amount; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $177,900
$177,900 is above the supported result for bank exception amount; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Unexplained and difference live in different drawers; Controller Reviews tells which opens.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Business Administration, Bank Reconciliation Review; use the stated business record or control rule to verify the answer.
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