On a bank reconciliation,which of the following will reduce the company's cash balance?
A)Outstanding check
B)Deposit in transit
C)Non-sufficient funds check
D)Bank error

Question

Quizplus · Accepted Answer

A non-sufficient funds check means that the company received a payment that bounced due to inadequate funds in the customer's account. Therefore, the company's cash balance will be reduced. The other options, outstanding checks, deposit in transit, and bank error, will not reduce the company's cash balance. Outstanding checks are checks that the company issued but have not yet cleared the bank. Deposit in transit refers to cash or checks that the company received but have not yet been deposited in the bank. Bank error means the bank made a mistake in the transactions, which needs to be corrected.

On a Bank Reconciliation,which of the Following Will Reduce the Company's