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:

Estimated Method

A technique used in accounting to approximate values or quantities that are uncertain, often applied in calculating depreciation or inventory levels.

Inventory Records

Documents that track the quantity, value, and movement of a company's stock of goods.

Physical Inventory

A process involving the manual counting of all inventory items in a business at a specific point in time to verify quantities and condition.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, examples include FIFO, LIFO, and weighted-average.