Herbert Company Deposited $25,000 in Its Bank on the Same

question 26

Multiple Choice

Herbert Company deposited $25,000 in its bank on the same day as, but after the bank prepared Herbert Company's bank statement. The deposit should appear on the bank reconciliation as a(n) ________ and is called a(n) ________.

• A) addition to the bank balance; outstanding deposit
• B) addition to the bank balance; deposit in transit
• C) deduction to the bank balance; deposit in transit
• D) deduction to the bank balance; outstanding deposit

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Definitions:

Endorser

Signature on the back of the check of the payee.

Endorsement

An act of giving one's public approval or support to someone or something, often used in contexts of advertisements or political backing.

Deposit Slip

A document provided by a bank for a depositor to fill out, designed to accompany bank deposits, detailing the items being deposited.

Currency

Any form of money; the name given to the cash we use in our society.