In reconciling a bank statement, the bank balance is $1000 and the chequebook balance is $1205. Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?
A)The bank has not cleared certain cheques.
B)The bank has added interest revenue to the account balance.
C)A deposit in transit was made at the end of the month.
D)The bank received an EFT from a customer.

Question

Quizplus · Accepted Answer

A deposit in transit is a deposit that has been made to the company's bank account but has not yet been recorded by the bank. This would cause the chequebook balance to be larger than the bank balance.

In Reconciling a Bank Statement, the Bank Balance Is $1000