Interest paid on a company's checking account should appear on the bank reconciliation as:
A) added to the bank balance.
B) added to the book balance.
C) deducted from the book balance.
D) having no impact on the book balance.

Question

Quizplus · Accepted Answer

Interest paid on a company's checking account should be added to the book balance in the bank reconciliation, as it increases the company's cash balance.

Interest Paid on a Company's Checking Account Should Appear on the Bank