Dally Company has just finished preparing its bank reconciliation.If everything was done correctly,which of the following items would be reported as a deduction from the company's ending balance per the bank?
A)Deposits in transit.
B)Service Fees.
C)Outstanding checks.
D)NSF checks.

Question

Quizplus · Accepted Answer

Outstanding checks are deducted from the bank balance because they represent checks that have been written by the company but have not yet cleared the bank.

Dally Company Has Just Finished Preparing Its Bank Reconciliation