To reconcile the bank statement,which of the following amounts would be subtracted from the bank statement balance?

Question

Quizplus · Accepted Answer

Outstanding checks are checks issued by the depositor but have not yet been presented to the bank for payment. Therefore, they reduce the actual bank balance and need to be subtracted from the bank statement balance when reconciling. Service charges (A) are fees charged by the bank for its services and reduce the depositor's account balance, but they are not subtracted from the bank statement balance. Deposits in transit (C) are deposits made by the depositor but not yet recorded by the bank, so they increase the actual bank balance and need to be added to the bank statement balance when reconciling. Amounts collected by the bank for the depositor's account (D) are funds received by the bank on the depositor's behalf, such as interest earnings or customer payments, and they increase the depositor's account balance, but they are not subtracted from the bank statement balance.

To Reconcile the Bank Statement,which of the Following Amounts Would