What Impact Will a Deposit in Transit and an Outstanding

question 16

Multiple Choice

What impact will a Deposit in Transit and an Outstanding Check have on a company's accounting records after a reconciliation is completed? (will cash have to increase or decrease based on the reconciling item)

• A)Deposit in Transit will need to increase the Cash account and Outstanding Checks will decrease the Cash account.
• B)Deposit in Transit will need to decrease the Cash account and Outstanding Checks will increase the Cash account.
• C)Both will increase the Cash account.
• D)No change needs to be made to the Cash account for Outstanding Checks and Deposits in Transit.

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Definitions:

Never Events

Serious, preventable patient safety incidents that should never happen in healthcare settings, such as surgery on the wrong site.

Skilled Nursing

A high level of medical care that is provided by trained individuals, such as registered nurses, to patients with serious illnesses or conditions.

Extensive Wound Care

A comprehensive approach to treating serious wounds that involves cleaning, protecting, and potentially surgical intervention to promote healing.

Hospice

System of family-centered care designed to help terminally ill people be comfortable and maintain a satisfactory lifestyle throughout the terminal phase of their illness.