A review of the bank statement and accounting records of Blake Company revealed the following items: Which of the item(s)would be added to the unadjusted bank balance to determine the true cash balance?
A)Item numbers 2 and 3
B)Item number 2
C)Item numbers 3, 4, and 6
D)Item number 3

Question

A review of the bank statement and accounting records of Blake Company revealed the following items:  Which of the item(s)would be added to the unadjusted bank balance to determine the true cash balance?
A)Item numbers 2 and 3 
B)Item number 2 
C)Item numbers 3, 4, and 6 
D)Item number 3

Quizplus · Accepted Answer

Item number 3 (a deposit in transit) should be added to the unadjusted bank balance to determine the true cash balance. The other items listed (2, 4, and 6) will require adjustments to the bank balance, but they do not represent additional funds that should be added to the unadjusted bank balance.

A Review of the Bank Statement and Accounting Records of Blake