In a bank reconciliation,a customer's NSF check included with the bank statement is:
A)deducted from the company's cash balance to get the true cash balance.
B)added to the bank's cash balance to get the true cash balance.
C)deducted from the bank's cash balance to get the true cash balance.
D)added to the company's cash balance to get the true cash balance.

Question

Quizplus · Accepted Answer

An NSF (non-sufficient funds) check is a check that bounced and was returned to the company by the bank. Therefore, it is not included in the company's cash balance because it was never actually received. Instead, it is deducted from the company's cash balance to get the true cash balance.

In a Bank Reconciliation,a Customer's NSF Check Included with the Bank