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

-Bank charge for printing cheques ________
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 charge for printing cheques ________
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

Bank charges for printing cheques are deducted from the book balance because they represent an expense that the company needs to account for in its records.

Classify Each of the Following Reconciling Items of the Tic