During a Bank Reconciliation Process

question 22

Multiple Choice

During a bank reconciliation process,

• A) outstanding checks and deposits in transit are added to the bank statement balance
• B) outstanding checks are subtracted and deposits in transit are added to the bank statement balance
• C) outstanding checks and deposits in transit are subtracted from the bank statement balance
• D) outstanding checks are added and deposits in transit are subtracted from the bank statement balance

---

Definitions:

Inventories

Quantities of goods or materials that a company holds for the purpose of sale or production at a given time.

Recession

An appreciable fall in economic activities spread throughout the economy, continuing for longer than a few months, typically observed in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy at constant prices.

Business Quarters

Divisions of the fiscal year into four equal parts, typically three months each, used by businesses to report earnings and assess performance.