Which of the Following Items Are Reconciling Items on the Book

question 201

Multiple Choice

Which of the following items are reconciling items on the book side of the reconciliation?

• A) outstanding checks and correction of book error
• B) deposit in transit and NSF check
• C) bank service charge and outstanding checks
• D) bank service charge and correction of book error

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Definitions:

Prepaid Insurance

An asset account that represents the amount paid for insurance contracts in advance for future coverage.

Insurance Expense

The cost associated with purchasing insurance coverage, recognized as an expense over the policy period.

Adjusting Entry

An accounting journal entry made at the end of an accounting period that ensures all financial statements are updated to reflect accurate and fair information.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update income and expense accounts and ensure that the financial statements reflect the accrual basis of accounting.