When preparing a bank reconciliation, deposits in transit are added to the balance shown on the bank statement.

Name: When preparing a bank reconciliation, deposits in transit are added to the balance shown on the bank statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deposits in transit are deposits that a company has made but have not yet been recorded by the bank on their statement. Therefore, they need to be added to the balance shown on the bank statement in order to accurately reconcile the bank account.

When Preparing a Bank Reconciliation, Deposits in Transit Are Added