Which of the below procedures would provide evidence of the

Which of the below procedures would provide evidence of the existence of cash? A. Comparing outstanding checks on the bank reconciliation with the bank cut-off statement B. Inspect the bank confirmations for collateralized loans C. Select deposits-in-transit from the bank reconciliation and ensuring that those deposits are listed in the cut-off statement D. Select deposit slips and find the associated cash receipts entries for that deposit

Solution

Answer is A. Comparing outstanding checks in bank reconciliation statement with the bank cut off statement.

Explanation:

It suggests that the number of checks of check outstanding date, which means the existence of cash balance as the outstanding checks have yet to be cleared.