Which of the following situations would cause the balance per bank to be more than the balance per books?
A)Deposits in transit.
B)Service charges.
C)Outstanding cheques.
D)Cheques from customers returned as NSF.

Question

Quizplus · Accepted Answer

Outstanding cheques (checks that have been written and recorded in the company's cash account but have not yet cleared the bank) reduce the balance per books but do not affect the balance per bank until they are processed. Therefore, the presence of outstanding cheques would cause the balance per bank to be more than the balance per books, as the bank has not yet deducted these amounts from the account.

Which of the Following Situations Would Cause the Balance Per