In the Reconciliation of a Bank Statement, Deposits in Transit

question 21

Multiple Choice

In the reconciliation of a bank statement, deposits in transit should be

• A)added to the unadjusted balance per the company's records.
• B)subtracted from the unadjusted balance per the company's records.
• C)added to the unadjusted bank statement balance.
• D)subtracted from the unadjusted bank statement balance.

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Definitions:

Computed Net

The calculated net value or result after considering all relevant deductions, adjustments, or allowances.

Annuity

An annuity is a financial instrument that provides a consistent series of payments to a person, often serving as a source of income for people in retirement.

Present Value Index

A calculation that compares the present value of net cash inflows to the initial investment, used to evaluate the profitability of an investment.

Computed

Refers to something that has been determined or calculated using a computer or calculator.