Which of the following items would require an adjusting entry after preparation of the bank reconciliation?
A) Errors made by the bank revealed by the bank reconciliation
B) All items on the bank's side
C) Errors made on the books revealed by the bank reconciliation
D) Outstanding checks

Question

Quizplus · Accepted Answer

Errors made on the books revealed by the bank reconciliation require an adjusting entry to correct the company's cash account balance. Errors by the bank do not affect the company's books directly and are resolved by the bank. Outstanding checks and all items on the bank's side are already accounted for in the reconciliation process and do not require an adjusting entry in the company's books.

Which of the Following Items Would Require an Adjusting Entry