The amount of deposits in transit is included on the bank statement as a(n):
A) deduction from the cash balance per books.
B) deduction from the cash balance per bank.
C) addition to the cash balance per bank.
D) addition to the cash balance per books.

Question

Quizplus · Accepted Answer

Deposits in transit are deposits made by the company that have not yet been processed by the bank. Therefore, they will not yet be reflected in the bank's cash balance. As a result, deposits in transit will be added to the cash balance per bank, increasing the overall cash balance.

The Amount of Deposits in Transit Is Included on the Bank