Which of the following would be deducted from the cash balance per books on a bank reconciliation?
A) Service charges
B) Outstanding checks
C) Deposits in transit
D) Notes collected by the bank

Question

Quizplus · Accepted Answer

Service charges would be deducted from the cash balance per books on a bank reconciliation as they represent a fee charged by the bank for services rendered. Outstanding checks and deposits in transit would be added to the cash balance per books as they represent transactions that have not yet cleared the bank. Notes collected by the bank would not be included in the bank reconciliation process as they have already been recorded as an increase in cash on the company's books.

Which of the Following Would Be Deducted from the Cash