Which of the following items does NOT cause a difference in the bank balance and the book balance on a bank reconciliation?
A) Nonsufficient funds checks
B) Outstanding checks
C) Deposits in transit
D) Canceled checks

Question

Quizplus · Accepted Answer

Canceled checks do not cause a difference between the bank balance and the book balance since they have already been paid and cleared by the bank. The other options listed (nonsufficient funds checks, outstanding checks, and deposits in transit) can all create discrepancies between the bank balance and book balance on a bank reconciliation.

Which of the Following Items Does NOT Cause a Difference