In the Reconciliation of a Bank Statement, "Deposits in Transit

question 187

Short Answer

In the reconciliation of a bank statement, "deposits in transit" should be:
A) added to the unadjusted book balance
B) subtracted from the unadjusted bank balance
C) added to the unadjusted bank balance
D) subtracted from the unadjusted bank balance

• A) added to the unadjusted book balance
• B) subtracted from the unadjusted bank balance
• C) added to the unadjusted bank balance
• D) subtracted from the unadjusted bank balance

---

Definitions:

Net Working Capital

A measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.

Total Equity

The financial value representing the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debts were paid off.

Progressive Tax System

A tax system where the tax rate increases as the taxable amount or income increases.

Incremental Income

Additional income generated from a specific action or decision, compared to a scenario where the action is not taken.