What is an example of a cash reconciling item for an item recorded by the bank but not yet recorded in the general ledger?
A) Interest earned on notes held by the bank
B) Outstanding deposits
C) Outstanding checks
D) There are no items recorded by the bank but not recorded in the general ledger.

Question

Quizplus · Accepted Answer

Interest earned on notes held by the bank is an example of a cash reconciling item that would be recorded by the bank but might not yet be recorded in the company's general ledger. This is because the company may not be aware of the interest earned until receiving a statement from the bank.

What Is an Example of a Cash Reconciling Item for an Item