In a Bank Reconciliation, Items Recorded by the Bank, but Not

question 3

Multiple Choice

In a bank reconciliation, items recorded by the bank, but not yet recorded by the company, include:

• A) deposits in transit.
• B) bank collections.
• C) outstanding checks.
• D) both deposits in transit and outstanding checks.

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Definitions:

Allonge

Accompanying a negotiable instrument, a piece of paper that provides room for an endorsement if no room is available on the instrument itself.

Instrument

A legal document that formalizes an agreement or right, such as a contract, will, or financial instrument.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership.

Blank Endorsement

An endorsement on a financial instrument, like a check, where the signature of the endorser is written but no specific endorsee is named, making it payable to the bearer.