Which of the following statements pertaining to bank reconciliations is false?
A)Outstanding checks are deducted from the bank cash balance.
B)Deposits in transit are added to the bank cash balance.
C)Bank service charges are deducted from the bank cash balance.
D)Non-sufficient funds checks identified in the bank statement are deducted from the book cash balance.

Question

Quizplus · Accepted Answer

Bank service charges are not deducted from the bank cash balance in a reconciliation; instead, they are deducted from the company's book cash balance to adjust the company's records to reflect the charges noted on the bank statement.

Which of the Following Statements Pertaining to Bank Reconciliations Is