Your company makes a bank deposit of $857 in its chequing account.Which of the following describes how this transaction should be accounted for?
A)You add $857 to your recorded cash balance and the bank deducts $857 from your chequing account balance.
B)You deduct $857 from your recorded cash balance and the bank deducts $857 from your chequing account balance.
C)You add $857 to your recorded cash balance and the bank adds $857 to your chequing account balance.
D)You deduct $857 from your recorded cash balance and the bank adds $857 to your chequing account balance.

Question

Quizplus · Accepted Answer

When a deposit is made, both the company's recorded cash balance and the bank's chequing account balance increase by the deposited amount.

Your Company Makes a Bank Deposit of $857 in Its