In reconciling the bank balance, the amount of an unrecorded bank service charge should be:
A)Deducted from the bank balance of cash.
B)Added to the book balance of cash.
C)Deducted from the book balance of cash.
D)Noted as a memo.
E)Added to the bank balance of cash.

Question

Quizplus · Accepted Answer

An unrecorded bank service charge should be deducted from the book balance of cash because it represents an expense that reduces the cash balance in the company's records.

In Reconciling the Bank Balance, the Amount of an Unrecorded