When preparing a bank reconciliation,deposits in transit 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

Deposits in transit are amounts that have been recorded by the company but not yet reflected on the bank statement. Therefore, they increase the balance per the bank statement when reconciling, as they are added to the bank's balance to match the company's records.

When Preparing a Bank Reconciliation,deposits in Transit Will