While preparing a bank reconciliation,which of the following items would be subtracted from the balance per the bank statement?
A)Outstanding checks
B)Deposits in transit
C)Bank service charges
D)Interest earned on the bank account

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been issued but not yet cleared by the bank. Therefore, they would need to be subtracted from the balance per the bank statement to reconcile the account correctly.

B) Deposits in transit would need to be added to the balance per the bank statement, as they have been made but not yet cleared by the bank.

C) Bank service charges would also need to be subtracted from the balance per the company's records, as they are fees charged by the bank that reduce the balance in the account.

D) Interest earned on the bank account would need to be added to the balance per the company's records, as it represents additional funds earned on the account.

While Preparing a Bank Reconciliation,which of the Following Items Would