Which of the Following Statements Pertaining to Bank Reconciliations Is

question 77

Multiple Choice

Which of the following statements pertaining to bank reconciliations is false?

• A)Outstanding checks are deducted from the bank cash balance.
• B)Deposits in transit are added to the bank cash balance.
• C)Bank service charges are deducted from the bank cash balance.
• D)Non-sufficient funds checks identified in the bank statement are deducted from the book cash balance, not the bank cash balance.

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Definitions:

Informative

Characterized by providing useful or interesting information.

Sole Proprietorship

A business structure in which one individual owns and operates the business, responsible for all its debts and liabilities.

State Tax Registration

The process by which a business or individual registers with a state authority to collect, report, and remit taxes as required by law.

Liability

Legal responsibility or obligation, especially for debts or damages.