QuestionJune 18, 2025

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should: Multiple Choice Deduct the deposit from the September 30 book balance and add it to the October 1 book balance. Skip the bank reconciliation this month. Add the deposit to the bank statement balance. Deduct the deposit from the bank statement balance. Add the deposit to the book balance of cash.

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should: Multiple Choice Deduct the deposit from the September 30 book balance and add it to the October 1 book balance. Skip the bank reconciliation this month. Add the deposit to the bank statement balance. Deduct the deposit from the bank statement balance. Add the deposit to the book balance of cash.
If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank
reconciliation, the company should:
Multiple Choice
Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
Skip the bank reconciliation this month.
Add the deposit to the bank statement balance.
Deduct the deposit from the bank statement balance.
Add the deposit to the book balance of cash.

Solution
4.7(234 votes)

Answer

Add the deposit to the bank statement balance. Explanation 1. Identify the Nature of the Deposit The deposit is a timing difference, known as a "deposit in transit," which means it has been recorded in the company's books but not yet reflected in the bank statement. 2. Determine the Correct Adjustment Deposits in transit should be added to the bank statement balance during reconciliation to reflect the true cash position.

Explanation

1. Identify the Nature of the Deposit<br /> The deposit is a timing difference, known as a "deposit in transit," which means it has been recorded in the company's books but not yet reflected in the bank statement.<br /><br />2. Determine the Correct Adjustment<br /> Deposits in transit should be added to the bank statement balance during reconciliation to reflect the true cash position.
Click to rate:

Similar Questions