Which of the following is correct with respect to a bank reconciliation?
A)Subtract interest earned from the bank's balance.
B)Add service charge to the company's balance.
C)Subtract NSF checks from the company's balance.

Question

Quizplus · Accepted Answer

NSF (non-sufficient funds) checks are checks that bounce or are returned unpaid by the bank. Therefore, they should be subtracted from the company's balance because the company will not receive the funds. Interest earned should be added to the company's balance, and service charges should be subtracted from the company's balance, but not added to it.

Which of the Following Is Correct with Respect to a Bank