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

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Definitions:

Interest Rate

The rate, represented as a fraction of the total loan, charged by a credit provider to a loan recipient for borrowing funds or assets.

Transactions

The action of conducting business, trade, or an exchange between two or more parties, often involving financial operations.

Reserve Ratio

The reserve ratio is the fraction of depositors' balances banks must have on hand as cash, a regulatory requirement set by central banks.

National Charters

Official permissions granted by a government allowing the creation or operation of national banks and defining their powers.