Cash collected and recorded by a company but not yet reflected in a bank statement are known as A)Debit memos B)Credit memos C)Outstanding checks D)Deposits in transit

Question

Quizplus · Accepted Answer

Cash collected and recorded by a company but not yet reflected in a bank statement are known as deposits in transit. This happens when a company deposits cash or checks after the bank's cutoff time for recording transactions in the current bank statement period. Therefore, the amount deposited does not appear in the bank statement, and the company reports this amount as deposits in transit in its own accounting records.

Cash Collected and Recorded by a Company but not yet