Deposits in transit are ______ on a bank reconciliation.
A) added to the book balance
B) deducted from the bank balance
C) added to the bank balance
D) deducted from the book balance

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been received and recorded by the company but not yet recorded by the bank. Therefore, they are added to the bank balance in a bank reconciliation to reflect the true cash balance.

Deposits in Transit Are ______ on a Bank Reconciliation