How Would Customer's NSF Checks Be Dealt with in a Bank

question 109

Multiple Choice

How would customer's NSF checks be dealt with in a bank reconciliation?

• A) added to company's book balance
• B) deducted from company's book balance
• C) added to bank statement balance
• D) deducted from bank statement balance

---

Definitions:

Credit to Cash

A transfer or accounting entry that increases the cash balance while simultaneously increasing a corresponding credit account.

Art Studio

A creative space where artists create, display, and sometimes sell their artworks.

Furniture

An asset category in accounting that refers to movable articles intended to support various human activities such as seating and sleeping or to hold objects at a convenient height.

Discount Period

The timeframe during which a discount is offered for early payment on sales made on credit, aiming to encourage prompt payment.