How is a customer's NSF check reflected on a bank reconciliation?
A)Subtracted from the unadjusted book balance to get the true cash balance
B)Added to the unadjusted bank balance to get the true cash balance
C)Subtracted from the unadjusted bank balance to get the true cash balance
D)Added to the unadjusted book balance to get the true cash balance

Question

Quizplus · Accepted Answer

The NSF check was unknown to the company prior to receiving the bank statement,so it should be subtracted from the unadjusted book balance to arrive at the true cash balance.

How Is a Customer's NSF Check Reflected on a Bank