Ordinarily, All Deposits-In-Transit Listed on the Year-End Bank Reconciliation Should

question 11

True/False

Ordinarily, all deposits-in-transit listed on the year-end bank reconciliation should appear as deposits on the cutoff bank statement.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time, with interest compounding at the end of each period.

Compounded Quarterly

Pertains to the process of calculating interest on a principal sum where the interest is added to the principal at the end of every quarter, thus interest in the next quarter is then earned on the new total.

Payments

Transactions by which goods, services, or obligations are paid for through the transfer of money or its equivalents.

Compounded Monthly

A method where interest earned is added to the principal monthly, so that each subsequent interest calculation is made on a larger amount.