When preparing a bank reconciliation:
A)deposits in transit are added to the bank balance.
B)service charges are subtracted from the bank balance.
C)outstanding checks are deducted from the book balance.
D)book errors are subtracted from the bank balance.

Question

Quizplus · Accepted Answer

Deposits in transit are added to the bank balance because they have been recorded in the company's books but not yet reflected in the bank statement.

When Preparing a Bank Reconciliation