While preparing a bank reconciliation, which of the following items would be subtracted from the balance per the bank statement?
A)outstanding checks
B)deposits in transit
C)bank service charges
D)interest earned on the bank account

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been issued but have not yet cleared the bank. They are deducted from the balance per the bank statement to get to the true cash balance. Deposits in transit are added to the balance per the bank statement since they have not yet been recorded by the bank. Bank service charges and interest earned on the bank account are typically already reflected in the balance per the bank statement.

While Preparing a Bank Reconciliation, Which of the Following Items