Deposits in transit
A) have been recorded on the company's books but not yet by the bank.
B) have been recorded by the bank but not yet by the company.
C) have not been recorded by the bank or the company.
D) are cheques from customers which have not yet been received by the company.

Question

Quizplus · Accepted Answer

Deposits in transit refer to deposits made by a company that have been recorded on their books, but have not yet been recorded by the bank. This can occur when a deposit is made close to the end of a bank's business day or on a weekend, and the bank has not yet had a chance to process the deposit.

Deposits in Transit