While preparing a bank reconciliation,which of the following items would be added to the bank statement balance?
A)Outstanding checks
B)Deposits in transit
C)Bank service charges
D)Interest earned on the bank account

Question

Quizplus · Accepted Answer

Deposits in transit are items that have been received by the company but have not yet been recorded by the bank. Therefore, they need to be added to the bank statement balance to reconcile it with the company's records. Outstanding checks, bank service charges, and interest earned on the bank account would be subtracted or added to the company's records, but not to the bank statement balance.

While Preparing a Bank Reconciliation,which of the Following Items Would