Concept:A bank statement balance can be higher than the cash book when the bank has recorded income that the cash book has not yet entered.
Explanation:When the bank pays interest into an account, it credits the bank statement, which increases the bank balance.
If this interest received has not yet been recorded in the cash book, the cash book balance remains lower.
Therefore, the bank statement balance appears overstated when compared with the cash book.
Other options like commission paid, direct payment, and direct withdrawal all reduce the bank balance, not overstate it.
Answer:B. interest received