When preparing a bank reconciliation,an NSF check will:
A)Increase the balance per depositor's records.
B)Decrease the balance per depositor's records.
C)Increase the balance per the bank statement.
D)Decrease the balance per the bank statement.

Question

Quizplus · Accepted Answer

An NSF (Non-Sufficient Funds) check is a check that cannot be processed because the account on which it was drawn does not have enough funds. When a depositor receives an NSF check, it means that the expected funds from that check will not be added to their account. Therefore, the depositor must decrease their account balance to reflect the fact that the deposit will not be realized. This adjustment is made in the depositor's records, not the bank's statement, because the bank has already reflected the NSF by not crediting the depositor's account with the funds from the NSF check.

When Preparing a Bank Reconciliation,an NSF Check Will