In a Bank Reconciliation, a Customer's NSF Check Included with the Bank

question 70

Multiple Choice

In a bank reconciliation, a customer's NSF check included with the bank statement is:

• A)deducted from the bank's cash balance to get the true cash balance.
• B)added to the bank's cash balance to get the true cash balance.
• C)deducted from the company's cash balance to get the true cash balance.
• D)added to the company's cash balance to get the true cash balance.

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Definitions:

Debit Balance

The amount that remains in a specific account after accounting for debits and credits, indicating the total debits exceed the total credits.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior, or for a chain of reasoning.

Bank Services

Refers to the various services and products offered by banks to their customers, such as checking accounts, loans, and financial advice.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, and ensure compliance with laws and regulations.