When preparing a bank reconciliation, which of the following would be deducted from the company's cash balance?
A) Note receivable collected by the bank.
B) Deposits in transit.
C) Outstanding cheques.
D) Bank service charges.

Question

Quizplus · Accepted Answer

Bank service charges are deducted from the company's cash balance in a bank reconciliation because they represent amounts the bank has charged the company for its services, which decrease the company's book balance of cash.

When Preparing a Bank Reconciliation, Which of the Following Would