When preparing a bank reconciliation,NSF checks are
A)added to the company's book balance.
B)deducted from the company's book balance.
C)added to the bank statement balance.
D)deducted from the bank statement balance.

Question

Quizplus · Accepted Answer

NSF (Non-Sufficient Funds) checks are deducted from the company's book balance because they represent amounts the company thought it had received but did not due to the payer's lack of funds.

When Preparing a Bank Reconciliation,NSF Checks Are