In reconciling a bank statement,the bank balance is $1,500,and the checkbook balance is $2,105.Which of the following is the most probable reason for the checkbook balance being larger than the bank balance?
A) The bank has not cleared certain outstanding checks.
B) The bank has added interest revenue to the account balance.
C) A deposit in transit was made at the end of the month.
D) The bank received an EFT from a customer.

Question

Quizplus · Accepted Answer

A deposit in transit means that a deposit has been made but not yet processed by the bank. Therefore, it would explain why the checkbook balance is larger than the bank balance. Option A would result in a lower bank balance and Option B would result in a higher bank balance. Option D would not directly affect the bank or checkbook balance as it is only an electronic fund transfer.

In Reconciling a Bank Statement,the Bank Balance Is $1,500,and the Checkbook