Which of the Following Is Not a Reconciling Item When

question 21

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:

Gross Method

An accounting practice where invoice transactions are recorded at their full, or gross, amounts before any discounts are applied.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold.

Merchandise Purchase

Refers to the acquisition of goods to be sold in the normal course of business.