Deposits in transit:
A)have been recorded by the company but not yet by the bank.
B)have been recorded by the bank but not yet by the company.
C)have not been recorded by the bank or the company.
D)are customers' cheques that have not yet been received by the company.

Question

Quizplus · Accepted Answer

Deposits in transit are deposits that have been made by the company but have not yet been processed by the bank. The bank may take a few days to process the deposit, so the company records the deposit as a deposit in transit until the bank processes it. Therefore, deposits in transit have been recorded by the company but not yet by the bank.

Deposits in Transit