Which of the Following, in a Bank Statement Reconciliation, Would

question 16

Multiple Choice

Which of the following, in a bank statement reconciliation, would be deducted from the bank statement balance?

• A) bank service charges
• B) outstanding deposits
• C) NSF charges
• D) outstanding checks

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Definitions:

Allowance Method

An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.

Receivables

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Allowance Method

An accounting technique to estimate and account for bad debts, where anticipated uncollectible accounts receivable are predicted and recorded.

Uncollectible Receivables

Accounts receivable that cannot be collected from customers, often recognized as a bad debt expense.