In Reconciling a Bank Statement, the Bank Balance Is $2,100

question 140

Multiple Choice

In reconciling a bank statement, the bank balance is $2,100 and the checkbook balance is $2,001. Which of the following is the most probable reason for the bank balance being larger than the book balance?

• A)There are outstanding checks.
• B)The bank has deducted certain amounts for bank service charges.
• C)A deposit in transit was made at the end of the month.
• D)The company erroneously recorded a check for an amount less than actual.

---

Definitions:

Principal

Principal refers to a main party to a transaction, contract, or financial instrument, as opposed to an agent who acts on someone else's behalf.

Agent

A person or entity authorized to act on behalf of another (known as the principal) in legal or business matters.

Authority

The legal power or right given to an individual or entity to carry out certain actions or to make decisions.

Detrimental

Causing harm or damage, often used to describe actions or conditions that negatively affect someone or something.