Which of the Following Items Are Reconciling Items on the Bank

question 213

Multiple Choice

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

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

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Definitions:

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.

Annual Cost Savings

The reduction in costs realized over a year, from actions such as process improvement or cost-cutting measures.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows or to assess the attractiveness of an investment.