Deposits in transit
A)have been recorded on the depositor's books but not yet by the bank.
B)have been recorded by the bank but not yet by the depositor.
C)when the month's bank statement is received in order have not been recorded by either the bank or the depositor.
D)are customers' cheques that are in the mail but have not yet been received by the depositor.

Question

Quizplus · Accepted Answer

Deposits in transit are deposits made by the depositor that have not yet been recorded by the bank. They are recorded on the depositor's books but not yet by the bank, which means they are not reflected on the bank statement. This is why they are called "in transit" - they are in the process of going from the depositor to the bank.

Deposits in Transit