Which one of the following items is a reconciling item on the bank side of a bank reconciliation?
A) Canceled checks
B) Outstanding checks
C) NSF checks
D) Service charge

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been issued but have not yet cleared the bank. These must be reconciled to the bank statement to ensure that the account balance is accurate. Canceled checks have already cleared the bank, NSF checks reflect a lack of funds in the account, and service charges are fees charged by the bank and are already reflected on the bank statement.

Which One of the Following Items Is a Reconciling Item