All of the Following Bank Reconciliation Items Would Result in an Adjusting

question 45

Multiple Choice

All of the following bank reconciliation items would result in an adjusting journal entry on the company's books except:

• A)interest earned.
• B)deposits in transit.
• C)service charge.
• D)a customer's cheque returned NSF.

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Definitions:

Accounts Receivable Subsidiary Ledger

A detailed ledger that contains individual customer accounts, tracking the amounts owed by each customer to a business.

General Ledger

A comprehensive record of all financial transactions, organized by account, used to compile financial statements.

Control Accounts

General ledger accounts that summarize the details of transactions recorded in subsidiary ledgers.

Cash Purchase

A transaction where goods or services are bought and paid for with physical currency at the time of purchase.