Question

When a business compares the balance of its cash book with the balance shown by the bank passbook, there is often a difference, which is caused by the time gap in recording the transactions relating either to payments or receipts. It is known as ___.

• A. Permanent Difference
• B. Timing Difference
• C. Error
• D. Omission

Answer 1

The correct option is B

Timing Difference

Difference which is caused by the time gap in recording the transactions relating either to payments or receipts is known as timing difference.