Which of the following items are both reconciling items on the bank side of the reconciliation?
A) Outstanding checks and correction of book error
B) Deposit in transit and NSF check
C) Deposit in transit and outstanding checks
D) Bank service charge and correction of book error

Question

Quizplus · Accepted Answer

Both deposit in transit and outstanding checks are items that need to be reconciled on the bank side of the reconciliation as they affect the balance on the bank statement. Deposit in transit is a deposit that has been made by the company but has not yet been credited by the bank, while outstanding checks are checks that have been written by the company but have not yet cleared the bank. The other options have one item that is not a reconciling item on the bank side of the reconciliation (A - correction of book error is a reconciling item on the company's side of the reconciliation, B - NSF check is a deduction from the company's balance on the bank statement, and D - bank service charge is a deduction from the company's balance on the bank statement).

Which of the Following Items Are Both Reconciling Items on the Bank