In a bank reconciliation, a customer's NSF check included with the bank statement is:
A)deducted from the bank's cash balance to get the true cash balance.
B)added to the bank's cash balance to get the true cash balance.
C)deducted from the company's cash balance to get the true cash balance.
D)added to the company's cash balance to get the true cash balance.

Question

Quizplus · Accepted Answer

The NSF check was unknown to the company prior to receiving the bank statement, so it should be deducted from the company's cash balance to arrive at the true cash balance.

In a Bank Reconciliation, a Customer's NSF Check Included with the Bank