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 funds that have been deposited but not yet cleared by the bank, so they have not been added to the bank statement balance yet. Therefore, they need to be added to the bank statement balance when preparing a bank reconciliation. Outstanding checks, bank service charges, and interest earned on the bank account would be deducted from the bank statement balance.

While Preparing a Bank Reconciliation, Which of the Following Items