In preparing the bank reconciliation,certain transactions recorded by the depositor may not have been recorded by the bank.Which of the following is an example of this type of transaction?
A)Service charges
B)Outstanding checks
C)Credit for interest earned
D)Charges for NSF checks

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been recorded by the depositor but have not yet been processed by the bank. This is an example of a transaction that may not have been recorded by the bank yet. Service charges, credit for interest earned, and charges for NSF checks are all transactions that are typically recorded by the bank and included on the bank statement.

In Preparing the Bank Reconciliation,certain Transactions Recorded by the Depositor