If a check is recorded for the wrong amount, where is this error likely to be found?

When a check is recorded for the wrong amount in the accounting records, it will typically affect the cash account and possibly the expense or liability account it was intended to impact. If a check clears the bank for the incorrect amount, the actual cash balance in the bank will differ from what is recorded in the accounting records. This misalignment will cause discrepancies in the bank reconciliation process.

During the bank reconciliation, all cleared transactions are compared against the recorded transactions. When the check clears at an amount that does not match what is recorded, the reconciliation will show an imbalance because the records reflect one amount while the bank reflects another. This discrepancy is primarily what leads to option C being the correct choice. It directly addresses how the error manifests during the reconciliation process, demonstrating that the effective tracking of cash flow is vital in maintaining accurate financial statements.

The other options relate to significant accounting principles but do not directly connect to the specific issue of recording a check for an incorrect amount.