Outstanding checks, deposits in transit, deductions for bank fees, additions for interest, and errors are all factors that can cause the bank statement balance for a checking account to be different from the company's checking account balance.

Question

Quizplus · Accepted Answer

These are all common factors that can cause a discrepancy between the bank statement balance and the company's checking account balance. Outstanding checks are checks that have been written but have not yet been cleared by the bank, while deposits in transit are deposits that have been made but have not yet been posted to the account. Deductions for bank fees and additions for interest are also common adjustments that can cause differences between the two balances, as well as errors made by either the bank or the company.

Outstanding Checks, Deposits in Transit, Deductions for Bank Fees, Additions