In preparing a bank reconciliation,typical adjustments to the bank balance are deposits in transit and outstanding checks.

Question

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Deposits in transit and outstanding checks are two common adjustments made to the bank balance when preparing a bank reconciliation. Deposits in transit are deposits that have been made but have not yet been recorded by the bank, while outstanding checks are checks that have been written but have not yet cleared the bank. By making these adjustments, the adjusted bank balance should match the company's records, allowing for accurate financial reporting.

In Preparing a Bank Reconciliation,typical Adjustments to the Bank Balance