Which of the following items is a reconciling item on the bank side of a bank reconciliation?
A)Canceled checks
B)Outstanding checks
C)NSF checks
D)Service charge

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been issued by the company but have not yet been cleared by the bank. As a result, they need to be subtracted from the bank statement balance to arrive at the true cash balance. The other options listed (canceled checks, NSF checks, and service charges) are already reflected in the bank statement balance and do not require adjusting entries to reconcile the bank statement.

Which of the Following Items Is a Reconciling Item on the Bank