When preparing a bank reconciliation,deposits in transit should be
A)added to the unadjusted book balance.
B)subtracted from the unadjusted book balance.
C)added to the unadjusted bank balance.
D)subtracted from the unadjusted bank balance.

Question

Quizplus · Accepted Answer

Deposits in transit are deposits that have been made by the company but have not yet been recorded by the bank. Therefore, they should be added to the unadjusted bank balance to reflect the correct balance of the bank account.

When Preparing a Bank Reconciliation,deposits in Transit Should Be