If a cheque received from a customer that has been deposited by the seller is returned with the bank statement marked "not sufficient funds "(NSF),it would appear on the seller's bank statement reconciliation as a subtraction from the ending book balance of cash.

Question

Quizplus · Accepted Answer

If a cheque received from a customer is returned as "not sufficient funds", it means the cheque is not valid and cannot be deposited. Hence, the seller would need to subtract the amount of the cheque from their ending book balance of cash while reconciling their bank statement. Therefore, the statement is true.

If a Cheque Received from a Customer That Has Been