Rex's Auto has a checking account that earns interest.The current bank statement shows interest earned of $11.27.This amount should be:

Question

Quizplus · Accepted Answer

Interest earned should be added to the book balance because it is an inflow of funds and increases the overall balance in the checking account. It is likely that the bank statement does not include the interest in the beginning balance, so it must be added to match the book balance.

Rex's Auto Has a Checking Account That Earns Interest