When preparing a bank reconciliation:
A)deposits in transit are added to the bank balance.
B)service charges are subtracted from the bank balance.
C)outstanding checks are subtracted from the book balance.
D)book errors are subtracted from the bank balance.

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been received and recorded by the business but not yet recorded by the bank, hence they are added to the bank's balance in a bank reconciliation to reflect the true amount of cash available.

When Preparing a Bank Reconciliation