Which of the Following Is NOT a Reconciling Item When

question 13

Multiple Choice

Which of the following is NOT a reconciling item when preparing a bank reconciliation?

• A) bank service charges not recorded by the corporation
• B) outstanding cheques
• C) interest collected on a note receivable by the bank and recorded by the corporation
• D) outstanding deposits

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Definitions:

Rebate

A partial refund to someone who has paid too much money for tax, rent, or a utility, or an incentive payment to induce a particular purchase or behavior.

Cash Balance

The amount of cash in a company's accounts at any given time, important for ensuring liquidity and operational compatibility.

Inventory Loan

A loan that is secured by the inventory of a business, allowing the company to use its inventory as collateral.