Classify each of the following reconciling items of the Tic and Tac Company as:

-Bank added deposit to Tic and Tac's account in error ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Question

Classify each of the following reconciling items of the Tic and Tac Company as:

-Bank added deposit to Tic and Tac's account in error ________
A)an addition to the bank balance
B)a deduction from the bank balance
C)an addition to the book balance
D)a deduction from the book balance
E)not a reconciling item

Quizplus · Accepted Answer

When a bank adds a deposit to a company's account in error, it will eventually correct the mistake by deducting the amount from the account. Therefore, it is a deduction from the bank balance in the reconciliation process to reflect the true balance.

Classify Each of the Following Reconciling Items of the Tic